Research from estate agent shows annual price growth sent the Capital’s million pound property prices rocketing after price growth of 11% in the last quarter.

In September 2010, 57.1% of £1m properties were located in the traditional prime central locations like Chelsea and Kensington, a figure that has now fallen to 52.7% as areas to the south and west of more traditional prime central hotspots see strong price growth.

Strong price growth in the past two years has also boosted the number of homes worth £2m in prime London. 18.5% of all homes in prime London are worth £2m or more, compared to 14.3% a year ago, while 35.5% of homes in prime central London are now worth £2m or more.

Peter Rollings, CEO of Marsh & Parsons, said: “Properties no longer have to be palatial to be worth £1m. If they are located in a popular prime area, there’s a good chance they’ll be worth a seven figure sum. They do not necessarily have to be “mansions.”

“International and domestic buyers have been flocking to prime property in recent years, but this influx of wealth is no longer concentrated in the most central locations. With the supply of homes especially constrained in the central prime areas, wealth has been overflowing into areas like Balham, Clapham and Brook Green, pushing up prices and boosting the number of £1m properties across the capital.”

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However, average prices across the rest of London have not been as meteoric.

In Q3, prices rose by 3.5%, down from 3.7% in Q2 2012, which may indicate that the price growth in the capital is moving towards a steadier, more sustainable rate of increase, said the estate agent.