Safe and sound
After a record-breaking year, the British capital remains attractive to investors.
London will continue to draw investors despite short-term movements in its property market, according to experts who are keen to stress that the city's fundamental economic and political strengths make it a low-risk destination.
Nevertheless, after a record-breaking year, further surges in property prices in London's luxury housing market are unlikely next year, which is expected to be a period of consolidation, according to experts.
Home values in the British capital's prime residential districts rose steadily for much of the year to reach an average of GBP1,700 (HK$21,110) per square foot in the autumn, the highest achieved, says property consulting firm Savills.
"International buyers have bought three-quarters of brand-new homes and half of secondhand homes sold in prime central London during the first six months of 2012," says Lucian Cook, research director at Savills.
"Hong Kong and other Asian buyers have increased their presence this year. In prime central London's new-build sector, 15.8 per cent of homes sold in the first half of 2012 were bought by Chinese and buyers from Asia-Pacific," Cook says.
"Core prime central districts, such as Knightsbridge, Belgravia, Mayfair and Chelsea, have had the highest price rises because this was where demand from overseas buyers was strongest."
