The average price of a home located on one of central London’s popular garden squares now costs above £2 million and commands a sales premium of 25% over a similar home nearby, new research shows.
The study by residential estate agent Hamptons International analysed house prices in and around 64 of central London’s garden squares. The 25% premium for 2015 remains unchanged from 2014, although the average price of a home in a garden square rose 7% to £2,040,713, breaking the £2 million mark for the first time.
In order to derive the premium, the analysis compared sales prices, taken over a five year period, of listings located on a garden square, compared to those within a 200 meter radius of a square. All prices were indexed forward to January 2015 values, to account for house price inflation.
In 2015 a listing situated on a central London garden square sells on average for £2,040,713 compared to £1,643,907 for a similar listing within a 200 meter radius of the square.
For houses the price differential is even greater. The average price for a house located on a garden square in 2015 is £5,022,221, compared to £3,320,582 for a house within a 200 meters radius of a square.
‘Growing house prices have seen the average home on a central London garden square break the £2 million mark for the first time. As well as the view of and access to shared resident only gardens, many of these homes are in the capital’s most desirable locations, with names such as Eaton Square or Chester Square recognised the world over,’ said Johnny Morris, head of research at Hamptons International.
‘While in part it is the address that purchasers are paying for, the size and quality of the listing is also important and London’s garden squares are home to some of the finest examples of British architecture in the capital,’ he explained.
‘Overall it’s a combination of factors that accounts for the price premium buyers are prepared to pay for a home on a London garden square; namely setting, prestigious address and exceptional architecture,’ he added.
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Source: Property News Spain