The prime London property market enjoyed its best January ever with properties selling in record time and closer to the asking price than ever before.
One in three properties sold within two weeks of being put on the market, twice as many as in January 2012.
And the ratio of supply and demand has risen to to a four-year high with 23 registered buyers for each available property, according to new data from estate agent Marsh & Parsons, published today.
That compares to just 14 registered buyers on its books per property in January 2013.
The average property in the prime central London areas of Chelsea, Kensington, Notting Hill, Holland Park and Pimlico rose 10% in 2013 to £2,108,717.
Prices in outer prime London rose 15% in 2013 to hit an average price of £470,668.
Some 48% of all property sold in January for the asking price, or higher.
The average property now sells for 99% of the asking price, up from an average of 98% during the past two years.
In the past year, 19% more buyers enter the market, competing for 28% fewer properties.
Peter Rollings, chief executive at Marsh & Parsons, said: "Now is the time to get a jackpot price on property thanks to a surge of potential buyers entering the market in the New Year.
"These extraordinary conditions have created a strong seller's market and one of the best opportunities to sell property in recent years.
"Conditions like this won't last. Many people believe the best time to market property is during the busier months of the spring, but these sellers could be missing a trick.
"The increasing levels of property supply at that time of year will dissipate current levels of demand, and bring about a return to more normal market conditions in the spring."
London's rising population, together with a perfect combination of low interest rates and competitive mortgage finance, has created a surge of potential buyers, Rollings said.
"But the supply of housing stock has remained more subdued. Our more astute sellers are putting their properties on the market now because they know that the imbalance of supply and demand will help them to get a great price.
"In a seller's market, property regularly goes for over the asking price, so buyers need to be realistic when viewing property and placing bids. When they find their chosen property, they must not delay. Being decisive is key to successful negotiations."
Outer prime hotspots include Barnes (up 19%), Balham, Clapham, Fulham (all 18%), and Battersea (15%), Rollings said. "Last year the biggest price increases were to be found in the Outer Prime London villages'.
"These areas are all popular with UK buyers and are favoured for their community feel and local atmospheres.
"Slightly lower property prices in these areas also attract those who may have been priced out of more central areas," Rollings said.
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