LONDON was overtaken by Monaco as the world's most expensive location for luxury homes as job cuts by banks and the prospect of lower bonuses discouraged buyers.
The average price of London's most expensive houses and apartments rose 1.8 percent to 3,291 pounds (US$6,094) a square foot in the second quarter from a year earlier, according to an index compiled by Knight Frank LLP. In Monaco, the average increase was 30 percent to 3,762 pounds, the property broker said.
"The prime residential market is weakening across the world," said Liam Bailey, Knight Frank's head of research.