The top end of London's residential market, in particular, continues to show resilience in otherwise dismal trading conditions.
A private investor client of DTZ is believed to have sold the freehold of a 6,500 sq ft property at 12 Eaton Place, Belgravia, for about £12m.
The property is currently arranged as maisonettes and flats. It is understood that the purchaser, who is also a private investor, is to restore it into a single residence, subject to planning consent.
Madelaine Lundgren, sales manager for DTZ's Belgravia office, said demand had remained consistent at 'the super-prime level' as supply was comparatively low. 'We have been experiencing an ongoing demand for properties well above the £5m mark from a range of purchasers, underpinned by the offshore investors,' she added.
Three Russian buyers have paid a total of £4.1m for three flats in Kings Chelsea, a development at King's Road, Chelsea, one of the most fashionable residential areas in London.
King Sturge, who was involved in the sale, said the prices reflected, on average, a 25% increase in capital values over the last 18 months in London.
London's strength is reflected in Jones Lang La Salle's latest London Prime New Homes Price index, which shows that values remained static in the first three months of 2008 following a 2% fall in the final quarter of 2007.
JLL said it expects prices to remain static in the second quarter, putting annual growth at 11% – well down on recent years but still favourable compared with price falls in mainstream markets in Greater London and the rest of the UK.
A spokesman said the resilience of the prime market was down to low supply, a relatively high proportion of overseas buyers, who are unaffected by interest rates, and the current squeeze on mortgage finance.
