London real estate shows how expensive property can be

London's real estate market is booming with an incomplete apartment selling for a record US$237 million.

The property, which was sold to a foreign national, has 16,000 square feet of floor space and sits on a prime site overlooking Hyde Park in central London.

Once furnished and renovated, the apartment is expected to be worth much more.

The high-profile transaction has brought attention to the London property market, which has been overheating by any standard.

House prices in the city have increased by nearly 18% over the last year.

People living in the city have complained about the prices being paid for top end properties, saying they are being priced out of the market to the benefit of rich international investors. The typical home in London now costs 458,000 pounds ($770,000).

Overseas investors, especially from Russia and China have been parking excess funds in London property, often to capitalise on tight supply and strong demand through low interest rates and government incentives.

Foreigners are also attracted to the city because of its vibrant culture and business.

The housing boom in London has been stoked by low interest rates, a strengthening UK economic recovery and aggressive government incentives.

A government Help to Buy program has led to a rush of mortgage lending.