By Andrew Batt:
Supply
of new housing in Central London will fall as much as 40 percent short
of demand over the course of the next ten years, according to a new
research report.
Analysis by Knight Frank published in its London Calling
report this week predicts that if the annual uplift in households
continues on the same trajectory as the previous decade, then there is
an indicated undersupply in housing of more than 40 percent across the
capital between now and 2023.
The report focuses on Central London
and includes the four boroughs of Kensington & Chelsea, Camden,
City of London and Westminster. Knight Frank says an extra 41,860
households are expected to be created between 2011 and 2021, giving an
annual average uplift of 4,186. It estimates that demand for private
sector homes will be around 3,218 a year.
The reports says: “The
strength of prices and sales for prime and super-prime London property
since 2009 has led to increasing numbers of developers targeting this
portion of the market. While our data indicates that supply will fail to
keep up with demand this does not mean that there is unlimited capacity
for delivery at every price point.
“The sheer weight of interest
by developers at the top end of the market means those active in this
sector will have to keep a very close eye on their pricing, especially
for schemes moving away from the traditional core central prime areas.”
Source: http://my.knightfrank.com/research-reports/london-development-report.aspx
Andrew Batt, International Group Editor of PropertyGuru, wrote this story. To contact him about this or other stories email andrew@allproperty.com.sg
Recent stories you may have missed
Bangkok becomes more expensive for expats
Boom in Bangkok’s office sector
Calls to tighten foreign property ownership laws
Aussie agent targets children