Waterfront properties in sought after coastal locations cost 63% more, on average, than similar properties that are landlocked, according to an analysis from Knight Frank. To find out what the biggest premiums for coastal views are, the global property firm surveyed local agents in 10 popular second home destinations around the world to find out the premium paid to live on the water.
Across the board, prime waterfront properties in coastal locations around the world are worth an average of 63% more than their inland counterparts. However, there are regional differences from city to city. Waterfront properties on Italy’s Lake Como and in Barbados have the highest price premium. In both locations coastal homes can command prices 100% higher than equivalent homes inland. They were followed by homes in Phuket in Thailand and the central Algarve along Portugal’s southern coast where values increase by 89% and 75% respectively.
At the other end of the scale prime waterfront properties in coastal locations in Dubai are only worth an average of 10% more than inland homes. In The Hamptons, home to some of the most expensive residential properties in the United States, the presence of water only increases the value of a property by an average of 30%. Other locations with big premiums include Miami in Florida at 60%, Cannes in the south of France can command a premium of 40% to 60%, Cape Town in South Africa a premium of 56% and Mallorca in Spain 50%.
Quote from PropertyForum.com : “The old saying ‘We Do Love to be Beside the Seaside’ is proving true for the property market with new research showing that five seaside towns in Scotland have recorded at least a doubling in house prices since 2004.”
Meanwhile, the property firm expects prime property prices in central London to increase by 6% this year after prices continued to rise in August. Its latest central London sales index shows that property prices in London’s best postcodes increased by 0.6% this month and so far this year prices have risen by 4.8%. Marylebone and Notting Hill recorded the largest rises over the course of the month, up by 1.5% and 1% respectively. Islington, City Fringe and Hyde Park all reported price growth of 0.9% in August.
In spite of record prices, enquiry levels are still robust and interest among prospective buyers remains high across central London. The number of new applicants is up by 33.9% over the year to date compared to the same period in 2012 and the number of property viewings conducted over this period is up by 18.5%. At the same time annual price growth for properties in Greater London is now outstripping prime central London, boosted by the city’s continued economic recovery and government policy.
Figures from the Office of National Statistics show that property prices in Greater London have risen by 8.1% over the past 12 months. In comparison the Knight Frank Prime Central London Sales Index is up by 7% on an annual basis. Price rises in prime central London are primarily being driven by homes in the sub £1 million and £1 million to £2.5 million price bracket. Homes in these price brackets increased by around 1% in August and are up by 8.7% and 7% respectively over the year to date. Comparatively, homes in the £5 million to £10 million and the £10 million plus price brackets increased in value by 0% and 0.2% month on month and are up by 2.6% and 1.6% respectively so far in 2013.