House prices in the south London neighborhood of Dulwich rose 1,150% between January 1995 and September 2017, making it home to the highest long-term price growth across England and Wales in the last two decades, according to a report Tuesday from Knight Frank.
Along with Dalston in east London—which tied for the largest rises—Dulwich far exceeds the London average price rise of 698%, as well as the 436% average across the whole of England and Wales in the same time frame.
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The increase is largely due to demand for schools, according to the report. Esteemed private schools like Dulwich College, James Allen's Girls' School and Alleyn's School, are all in the area, and charge between £5,000 (US$6,651) and £7,000 (US$9,312) per term.
"Demand is naturally robust in Dulwich because of the area’s world-class schools. However, we have seen a notable rise in trading activity since the final months of 2017 when asking prices declined by 5% to 10% to reflect higher rates of stamp duty," said Mitchell Murphy, head of Knight Frank’s Dulwich office, in the report.
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"Another trend we have observed is that buyers are migrating towards more peripheral areas as they seek better value for money while remaining in catchment areas for top schools. Typically East Dulwich and Herne Hill properties offer in excess of 10% more space for the same money as Dulwich Village," Mr. Murphy said in the report.
In the short term, average prices in Dulwich fell 1.6% in the year to February, less marked than the previous year, but buyers remain highly price-sensitive, the report said.
In the same time frame, the number of Dulwich’s new prospective buyers in the 12 months to February 2018 rose 37%; the number of offers made rose 29%; and the number of viewings rose 9%, according to the report.