Foreign investors flee London’s over supplied luxury homes market
Look at Battersea Power Station today, and it looks a bit sorry for itself. All of its four original chimneys have now been demolished, and one counterfeit replacement chimney has been erected.
But Battersea Power Station’s developers must be quaking in their steel-toecapped booties, as London’s over supplied luxury apartment market, combined with the global collapse of oil prices and failing Asian markets, means demand is drying up.
It is drying up to such an extent that Battersea Power Station’s developers have slashed the prices of the apartments since January, with discounts as high as 38% on some properties.
But the scale of the abandonment of the scheme is surprising. According to property firm Propcision, since last year an astonishing 197 properties in the development have been listed for resale by Battersea Power Station Estates.
According to City AM, a four bedroom townhouse on the site was listed in July last year for £6m, but was reduced to £4m in January – a decline of 38%.
Another flat on the site which originally went on sale at £850,000, is now available for £600,000.
A Battersea Power Station spokesperson said: “Some of our purchasers have decided to re sell their properties; as far as we are aware, in the first phase, only 10% have reassigned and they have enjoyed a growth of on average 30%.”