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London

Residential developer confidence in central London increased during the first half of 2011 say Jones Lang LaSalle in latest research report


London, 11th August 2011 -  Research undertaken prior to the recent European and US debt issues, global stock market falls and the UK riots, shows that Central London residential developers became more confident during the first half of 2011, according to the latest Central London Apartments research report by Jones Lang LaSalle.
 
Confidence in selling central London apartment units improved during the first half of 2011, while prices increased. Price growth of 1.3% in Q1 was followed by 1.0% in Q2 with upward price pressures easing as the year has progressed.
Core locations are witnessing superior price growth, with five of the most expensive regions benefiting of from price rises in excess of 3% in the year to Q2 2011.
 
Tim Wright, Residential Director at Jones Lang LaSalle commented that: “The central London residential market was stronger than anywhere else in the UK. Demand from local and overseas buyers has been high although they have become more discerning. However, a number of well-located developments, as well as schemes with special appeal, have achieved remarkable success when launched at home and abroad.
 
Looking at development in prime central London, Wright goes on to say that, "We are now seeing increased activity from parties looking to develop in prime central London, from South East Asia, the Middle East and Turkey, with much of this being on the basis that the UK is seen as a stable and safe bet with by worldwide investors looking to diversify their assets during this uncertain period.”
 
Given the latest European and US debt issues, the global stock market falls and the UK civil unrest, attention will switch to how the central London apartment market behaves over the next few weeks and months.
 
Neil Chegwidden, Residential Research Director at Jones Lang LaSalle said: “At the very least there will be a pause for breath as people absorb the latest news both at home and abroad. The first reaction is always to hold back from any unnecessary spending and we would expect the same reaction to current events from potential home buyers and investors, whether they are based in the UK or overseas. The big question is how long this all lasts and how damaging and lasting it is for buyer confidence. It must be said however, that although the world currently seems in turmoil, the resilience and 'bouncebackability' of central London residential is a well-ingrained trait. Experienced buyers and investors will be watching the market closely.”