Prime Central London property has always been popular with wealthy buyers and investors in the capital, but now the borders are beginning to change.
While the Royal Borough of Kensington and Chelsea in Prime Central London, along with its PCL bedfellows Mayfair and Knightsbridge, seem to have reached a peak in property values, there is still some way to go in neighbouring areas.
According to Chelsea estate agent Russell Simpson, many traditional Prime Central London buyers in these places, who would previously have spent their lives in the area, are now considering the unthinkable of moving ‘South of the river’.
The same can be said of property investors who have always concentrated on Prime Central London investment.
One of the main reasons is the development of Battersea Power Station.
Prices are predicted to grow by a further 15 per cent in Battersea by 2020 when the Power Station development is complete.
This has led to an exodus of traditional Prime Central London residents and investors over Chelsea, Albert and Battersea Bridges to take advantage of the better value to be had south of the river.
As Jake Russell, founder of Russell Simpson, commented: ‘Interestingly, we’ve found that the average house in Chelsea is 32 per cent more expensive than in Battersea (the difference rises to 40 per cent when comparing apartments).
‘As the market has become more competitive we’re seeing more and more home buyers favour value and long-term growth above the status symbol of a good postcode.’
‘This is why the boundaries of PCL are slowly being redrawn. When you consider that prime purchasers wouldn’t even consider living south of the river 20 years ago, the change in attitude has been remarkable.’
As investors search for value and property price growth in London, it seems that Prime Central London is expanding to meet the demand.