Nearly half the London development's luxury apartments have been sold as the wider area gets a facelift.
Top prices at Great Minster House in the heart of Westminster are nearing £2,000 per sq ft as the spotlight intensifies on the SW1 postcode ahead of the General Election.
House builder Barratt London has sold 29 out of 61 luxury studio, one, two and three bedroom apartments at the scheme on the corner of Marsham Street and Horseferry Road since last autumn.
Values have topped out at £1,956 per sq ft and £1,980 per sq ft for one and two bedroom apartments respectively. But the penthouse, which is expected to be priced at a higher level, has yet to be released.
The high end homes have been purchased by owner occupiers originally from countries including China, Russia and Japan but now living in Britain - as well as domestic buyers. The scheme is due for completion this summer.
Pricing at Great Minster House is catching up with Barratt London's other residential development on Marsham Street, The Courthouse.
Three bedroom apartments were sold at the flagship project, where many homes have views over the Houses of Parliament, for up to £2,292 per sq ft. Pricing peaked at £2,603 per sq ft for a penthouse.
Gary Patrick, regional sales director at Barratt London, said: “The top end of the market in 2013 and 2014 was like a train. We sold 129 apartments at The Courthouse and it wasn’t particularly difficult.
“We had a slowdown in the summer and activity did not come back to the same level. It wasn’t sustainable.”
Values around Great Minster House have soared 38.6 per cent over the last five years, according to Prime Location. And further growth is forecasted, as a clutch of new residential developments start to transform the wider area in London.
Developer Land Securities is spearheading a £2.2m overhaul of Victoria. Its plans include four residential schemes, which will make up around one third of the three million square foot regeneration. It has sold 128 out of the 170 apartments at an average price of £1,806 per sq ft at its mixed-use scheme called Nova, according to its latest trading statement.
Nearby, luxury developer Northacre is creating 69 apartments in a Grade II listed building at 1 Palace Street opposite Buckingham Palace, and Alchemi Group is currently offering 57 New York loft-style apartments on Victoria Street, priced at £1,758 per sq ft.
Victoria boasts transport links and proximity to major landmarks, such as Buckingham Palace and Westminster Abbey. It is also on the proposed Crossrail 2 line, which is expected to open after 2030.
Olita Olga Sellers, associate director at Pericles Properties, explained: "In recent years, Victoria has attracted new buyers. It offers good value for money despite its close proximity to Belgravia, Mayfair, Knightsbridge, and the new developments along the River Thames near Nine Elms.
"It takes a certain buyer to live in Victoria. It is still a rising market that offers decent value given its location, coupled with the potential for considerable capital gains. In three to five years' time, the area will be unrecognisable, yet no less desirable."
New homes for sale in Victoria:
1. There are just 36 flats at this eight storey development, which was built in 2012. And this lateral top floor apartment has a sumptuous interior designed by the world famous designer Nicky Haslam. It is available for £3,750,000 (£2,007 per sq ft) via Pericles Properties.
2. Residents at this development in the centre of Victoria will benefit from a state-of-the-art gym, private car parking by negotiation, communal rooftop sky garden and 24-hour concierge service. A two bedroom flat is available for £2,650,000 (£1,758 per sq ft) via Sotheby's International Realty in Mayfair.
3. This three bedroom apartment comes with all the mod cons, including air-cooling and underfloor heating, a control panel in every room, secure underground parking space and a 24-hour porter. It will set you back £2,200,000 (£2,109 per sq ft) via Limetrees Property Consultants.