London luxury-home prices fell about 20 percent in May from a year ago as job cuts in the financial- services industry reduced demand, Knight Frank LLP said. The average value of houses and apartments costing more than 1 million pounds ($1.6 million) in the most expensive neighborhoods gained 1.6 percent from April, the London-based property broker said in a statement today. Prime residential properties have lost value on an annual basis for 11 straight quarters and won’t recover until the second quarter of 2010, according to Knight Frank. Prices will probably fall by a total of 30 percent from the market’s peak in March 2008, the broker estimates.
By Simon Packard, May 30, 2009, Bloomberg
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