London overtakes NY as priciest housing market

London overtakes NY as priciest housing market

London has officially overtaken New York as the world’s most expensive residential market, a top global property agency said in a report on Thursday.

“Our research suggests prices currently achieved in the prime areas of Central London are the highest in the world when measured by price per square foot (sq ft),” said CBRE Hamptons International, part of CB Richard Ellis Group Inc (CBG.N: Quote, Profile, Research), one of the world’s largest property services firms.CBRE said prime residential property in London on average cost around 1,200 pounds ($2,280) per sq ft compared with 1,000 pounds per sq ft in New York.

The pricing differential largely reflected the continued buoyancy in the London market, which was in sharp contrast to the slowing U.S. market, CBRE said.

Tokyo was the third most expensive residential market at around 900 pounds per sq ft.The report said London’s West End also beat Manhattan at the very top — or super-prime — end of the market.

It cited apartments at The Plaza and a triplex penthouse in the Pierre Hotel in New York that were on the market for between 2,700 and 2,800 pounds per sq ft, while an apartment in London’s Belgravia had set a record for a new development above 2,800 pounds per sq ft and a second-hand property in Chelsea had sold for more than 3,000 pounds per sq ft.In Europe, only Monte Carlo had kept pace with prices in London and New York, CBRE said, citing a recently completed sale at Le Park Palace for 2,840 pounds per sq ft.

Source: Reuters