Property prices soar in London's Square Mile
Residential property prices in London's Square Mile have increased 71pc since the last housing crisis
By Anna White, Property correspondent
Residential property prices in the Square Mile are soaring, rising 71pc since the last housing market crash as domestic and overseas buyers clamber to own a home in the heart of the capital.
The cost of an average flat in the financial district has risen to £739,546 today from £432,060 in 2008, thanks to residential towers springing up in between the financial institutions and office blocks of the City of London. As a result, the cost of apartments in the City are almost on par with London’s West End, traditionally a more popular place to reside.
Apartment costs in the West End have risen 81pc from £791,750 in 2008 to £1.43m in August, according to a study by the high-end property firm, Beauchamp Estates. However, oversupply in Docklands and Canary Wharf has suppressed prices to the east of the City.
The cost of an average flat in Docklands and Canary Wharf, home to global banks such as HSBC and Barclays, has risen 17pc from £338,555 six years ago to £397,135.
For homeowners or investors looking to purchase new-build or second-hand residential property in London, the Docklands market continues to provide the lowest entry prices. The Beauchamp report warns that with 15,901 new homes in the development pipeline in the Docklands, the east London market is in “danger” of oversupply.
Due to a lack of space and many listed buildings there are only 2,428 new homes in the pipeline in the West End and 1,391 in the City, which will prop up prices, the study found.
These findings follow the unveiling of plans for Wood Wharf – a new residential, retail and commercial complex in the Docklands by the Canary Wharf Group.
The property group that manages and develops the Canary Wharf estate is also mid-way through erecting a 58-floor apartment block, Newfoundland. Beauchamp’s supply data casts doubt on the high prices these new flats are expected to fetch.