We are currently marketing an exquisite penthouse on the Southbank, it is with great timing as the area in which is is located is now nearly considered as 'Prime'. This description meaning that £2000 per square foot beckons.
Featuring that instant-classic visualisation of London’s Southbank in ten years’ time, CBRE’s authoritative report on the area’s transformation can not be ignored. It’s a fascinating story; over the last 20 years the metamorphosis of the riverside between Tower Bridge and Battersea Power Station from poor relation to bright young thing is now a reality and the future is even ore exciting.
From an average of just £500 per square foot only five years ago, new schemes are now consistently achieving £1,800, with towering examples like NEO Bankside leading the way in every sense. Indeed, the magic £2,000 psf barrier is looking pretty vulnerable right now; CBRE reckons this will be comprehensively breached some time in 2014.
The Shard was the key tipping point, establishing the area on the global map and bringing confidence that this vast stretch of land is the place to invest, and comfortably into its “prime stride”. Although this change-up in terms of standards has admittedly been in evidence across the capital, CBRE makes a very good point that traditional prime areas simply don’t have the capacity to offer this sheer volume of premium new-build product. This is all very exciting, but what of the longer term future of the Southbank? CBRE expects this sharp up-tick to continue, but then for the rate of overall growth to inevitably soften, and fall back in line with wider market trends. Crucially for anyone investing right now though, these are expected to be prime central London trends, rather than Greater London trends.