As demand for London property continues to grow, areas near central London are gaining momentum with new neighborhoods entering the £1 million point price bracket, a new report finds. The new £1 million ($1.54 million) neighborhoods include Hammersmith, Maida Vale, Queen's Park, Muswell Hill, East Finchley, Battersea and Vauxhall, according to the London Residential Review from Knight Frank, a real estate consultancy that tracks market values worldwide.
The analysis is based on all London postcodes where at least 20% of sales exceeded £1 million for at least one quarter since 2014. These new one-million-pound neighborhoods are increasing in popularity because of their value compared with prime London property, proximity to the city center and the number of new developments built in these areas. The London Residential Review found that price growth, over two years to August 2015, was 2.8 percentage points higher in outer London than in prime central London for properties priced between £1 million and £2 million. More: Sales Struggle in South London Although property-price growth in London has slowed overall, some pockets have experienced double-digit increases. Home prices in Queen's Park, a new million-pound neighborhood, were up 11.7% in August compared with a year earlier. Canary Wharf in East London grew by 11.3% over the same time period. Demand for London property below £2 million is set to remain strong with the city's population expected to add another 100,000 people over the next 10 years, according to Knight Frank Research.
Correction: Price growth over a two-year period was 2.8 percentage points higher in outer London than in prime central London for properties priced between £1 million and £2 million, according to the London Residential Review. An earlier version of this article incorrectly said the price growth was 1.3 percentage points higher.