London’s Docklands market continues to provide the lowest entry prices across the capital, with flats averaging £397,135.
According to research from Beauchamp Estates, house prices stand at £845,280 in the City and £1.4m in the West End.
However, the group warned that the east London market is in danger of oversupply, with 15,901 new homes in the development pipeline. The Docklands market has no “new homes price premium”, unlike its rival markets in the West End and City, it added.
Since 2008, residential prices in the West End and City have risen by 81% and 71% respectively. House prices in Docklands have risen by 17% over the same period.
In the West End, sale prices for newly-built homes average £1.6m, compared with £1.4m for secondhand properties; in the City, new homes sales average £867,988, compared with £805,009 for secondhand stock; and in Docklands, secondhand homes average £405,711, compared with £341,026 for new-build homes.
There is now a widening gap between strong rising residential values in the West End and City, and a much slower Docklands/east London market. Since 2000, house prices in the West End and City have risen by 286% and 200% respectively, compared with an 88% increase in Docklands.
There has been a huge surge in new residential development, sales and values in the City during the past three years, particularly in the EC2 postcode. Since 2011, there has been a 17.2% increase in private stock in EC2, with 294 new flats completed between 2012 and 2014, compared with just 98 new homes in the previous eight years.
annabel.dixon@estatesgazette.com
