By Jennifer Hill, Personal Finance Correspondent

LONDON (Reuters) - Prime London property prices are weathering the market downturn, but could be hit by prevailing economic conditions, experts say.

Airing their views during a housing market briefing, "Crash or Correction?", directors of the capital's leading estate agents pointed to a downturn in transactions.

Savills said volumes of properties changing hands in the five million pound-plus market were down 23 percent on the year, while the value of deals has declined 11 percent, compared to a 106 percent surge in 2006.

Douglas & Gordon, one of London's largest independent estate agents, has witnessed a 35 percent drop in buyers on last year, but from an abnormally high peak in early 2007.

Despite a general consensus for a correction rather than a crash, some agents were more bearish than others.

Charlie Ellingworth, marketing director of Property Vision, said prime central London property prices were off 10-15 percent since the autumn, and pencilled in another 10 percent decline.

The full impact of the global credit crunch was yet to be felt, he said, and the prospect of City job losses and lower bonuses would hit property, particularly in the one to seven million pound price range.

"It (the credit crunch) is the elephant in the drawing-room," said Ellingworth.