Knight Frank's latest survey of the market for outrageously expensive homes reveals that the seriously wealthy have become as reluctant to pay over the odds as less well-funded London buyers.
Since the beginning of the year values have risen by 3.7 per cent, which contrasts with the fall of 1.9 per cent recorded for the whole of 2003. However, in July, prices marked time for the second consecutive month.
Needless to say, show a billionaire a magnificent property in a great location and they'll send some minion in to bid like a good 'un until the place is secured.
Kensington Court Gardens, W8 is clearly one such enclave. £2,750,000 is the current price of entry, a 15 per cent increase since the start of the year.
The Manor, W1 is also a seven figure hotspot with buyers typically forking out £2,800,000 for the privilege of living there (up 12 per cent this year).
Prices have risen less dramatically in Ilchester Place, W14 (seven per cent), but with an average asking price of £6,000,000, residents are already members of a very exclusive club indeed.
"Definite Plateau"
Noel Flint, partner at Knight Frank's Sloane Avenue office, said: "Rises in interest rates are affecting the market, but there are enough buyers who do not require a mortgage, or who still view rates as good value, for prices to hold up.
"We would expect the market to slow a little over the summer months, so there is also a seasonal element to recent figures.
Liam Bailey, head of residential research at Knight Frank, added: "It is now clear that the growth in prime London prices has slowed in recent months and there appears to be a definite plateau effect as interest rates begin to bite in this sector.
"However we are not predicting at the current time price falls, such as those that we witnessed in 2003, and we are standing by our prediction of a six per cent overall price rise in the sector by the end of 2004."
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Michael O'Flynn
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