East London residential: our patch, our view Q3 2016
Despite the impact of Brexit and additional Stamp Duty, buyer appetite remained strong in the third quarter. Specifically, investors remained highly active; an encouraging sign that they have not been discouraged by the additional 3% levy. With many high profile launches during Q3 helped drive sales volume of nearly 100 for CBRE East London.
- House prices in East London increased by 14.1%, compared with 12.1% across wider London
- Our average new build value was £921 psf, down from 21% from Q2 but this largely reflects the sales of lower units, with 14% of sales over £1,250 psf in Q3, compared with 40% in Q2
- UK buying activity remains strong in East London, with UK buyers accounting for 61% of sales in Q3
- Investors accounted for 83% of buyers this quarter, up from 75% in Q2
We expect activity to pick up during Q4, as an improvement in confidence and pent-up demand, as well as a number of high profile launches translates into sales. Overall, we expect domestic demand to remain strong as the market continues to be underpinned by the favourable credit environment.