There is a glut of high-end new-builds coming onto the market in London and buyers need to either purchase the highest quality or the most affordable to make it a worthwhile investment, according to a new report.
Research by Property Vision, a London-based buying agent, found that there could be as many as 54,000 new-build properties in the pipeline in prime London. These are part of 973 schemes, which are either in the planning stage or under construction.
Almost 13,000 of these are in the SW8 zip code, which includes the development of Battersea Power Station, next to the river Thames, into luxury apartments, office space and shops by Sime Darby, a Malaysian developer.
However, with just 7,000 new-build properties changing hands in prime London last year, the gap points to significant oversupply, although some neighborhoods will be much more affected than other areas of London.
“If you go out and try to buy a nice two or three bedroom flat in Chelsea or South Kensington you won’t find much to look at; this remains a tightly held market with mainly discretionary sellers,” Charlie Ellingworth, director of Property Vision, said.
“In the big regeneration areas it is another matter – and you will have to buy the very best – or very cheaply – to make a success of it. And there are some excellent schemes out there – alongside some that are truly awful.
“The word ‘prime’ has become overused in recent years, alongside ‘iconic.’ As the market adjusts, their real meaning will become apparent and those who believed the developers’ hyperbole may wish they had taken more time – and advice.”
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