Sealed bids and gazumping are once again prominent features of the Central London property market, as the severe shortage of new homes coming onto the market fails to cater for strong demand forcing prices back up to 2007 levels, according to Cluttons.
The property consultants projects that around 10% of all property sales are currently generating multiple offers and ending in sealed bids, with the vendor often achieving in excess of the full asking price.
Cluttons report that properties which are located in sought-after areas, such as homes in
Hyde Park, Chelsea, St John's Wood, Battersea and Clapham, are achieving in the region of 20 bids per property.
Overseas nationals are still making up a significant proportion of buyers in Central London as they move to take advantage of the weak pound.
James Hyman, partner for residential sales at Cluttons, said: “The London market is currently in a bubble, driven by pent up demand from buyers and a shortage of property for sale. Sellers' expectations are increasingly high which is reflected in steep asking prices, but buyers are not being put off.
“This situation is likely to be short lived, however, with unemployment still rising and an expected surge in forced sales approaching, as homeowners who bought at the peak of the market with high LTVs find they are unable to remortgage on similar deals. I expect to see the market drop off again in the autumn and urge prospective sellers to act now in order to achieve the best prices we are likely to see for a year.”
See Also: St John's Wood (1), Battersea (1), Clapham (1), Hyde Park (1), Chelsea (1), Cluttons (1), Property News (6680)
Date Published: 13 October 2009
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