Agents Douglas and Gordon have revealed a record year for property sales values in 2013.
It said the value of properties sold in D&G land in 2013 was heading towards £10.5billion – a more than 20% increase on the figure for 2012 which was itself a record.
In terms of numbers, more than 11,000 have been sold in the year – an increase of nearly 10% over 2012 and the highest volume of sales since the peak year of 2007 (13,000 sold).
What this shows is that the reality behind the apparent lack of stock, according to many agents, is that properties, faced with very strong demand, have simply sold very quickly.
Looking at forecast comparisons, D&G said: "With the year behind us and unlike some of our more resourced competitors, we face up to the forecasts we made twelve months ago for the central London sales market.
"Unlike in 2012, when the sales market moved ahead 9.7% against our forecast of within the range of 8% to 10%, in 2013, our forecast of 8% looks very undercooked against an astonishing final result of an increase in sales values of 17%. In mitigation, we were spot on in Prime Central London where values moved ahead by 8.2%. The most extraordinary feature of the market in 2013 was the increase in values of property in the 'rim' around Prime Central where values increased in the year by nearly 21%.
D&G said 2014 promised further growth as a result of "worldwide demand for London residential property as a 'safe haven'" but price increases would be limited due to property tax uncertainty ahead of the 2015 general election.
Under these circumstances, single figure growth of 5% to 7% was expected.