The selling prices of apartments situation on roads surrounding the five central Royal Parks in London have increased by 172% in the last decade, new research has found.
This is compared to prices for other prime listings in London that are not close to this prestigious group of green space that include Regent’s Park, Kensington Gardens, Hyde Park, Green Park and St James’ Park.
Hyde Park, which stretches across central London, has seen the greatest rises. Between 2013 and 2014 alone, the premium commanded by listings in close proximity to the park was 23.8%, according to the Parkside premium Report by Dataloft.
‘London as a city is rightly proud of its green spaces, which define the centre of London and provide more outside public space than New York, Paris or Tokyo. The Parkside Premium Report mirrors our experience of the market,’ said Gary Hersham of Beauchamp Estates.
He explained that living next to a park is increasingly a priority for many buyers in the prime London listing market.’In 2012, for example, an influx of super luxury developments pushed the premium for living parkside to 32% over other prime central London areas,’ he said, adding that close proximity to a Royal Park is a pre-requisite of many high net worth individuals purchasing in London.
Hyde Park, in the borough of Westminster, is the most sought after park to live close to. The south side of Hyde Park, driven by key sales in developments such as One Hyde Park and 4-5 Princes Gate, has reportedly achieved sales values of up to £9,000 per square feet and in doing so set record prices in London.
The report notes that the north side of Hyde Park has achieved values of around £3,500 per square feet. The north side of the park also has less of a gap between parkside listings and the surrounding areas when compared to the south, with a 43.2% premium to live parkside for the north versus a 67.7% premium for apartment listings on the south.
Hersham pointed out that the rise in the premium for parkside listings boosted by UK domestic buyers. Some 26% of those living around Hyde Park also own another home and 38% are within the UK.
The report also shows that apartments by the five central London Royal Parks have commanded a premium of 20% in the year 2014/2015, compared to just a 5% premium in 2005.
The most marked jump in price premiums for living parkside was between 2006 and 2007, with an 11% rise in premiums. This can be explained by the myriad of luxury developments launched that year such as One Hyde Park, which reportedly set the world record for a penthouse selling price.
The report also looks towards the future of this sector of the listing market. ‘The report shows beyond all doubt the difference that being situated next to a Royal Park can have on listing value and reveals just how important the swathes of green space are in attracting listing purchasers in London,’ added Hersham.
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Source: Property News Spain