Real Estate

London Luxury Home at ‘Unbelievable’ Discount Shows Price Falls

“Unbelievable reduction,” says the broker’s email.

An investor who agreed to purchase an apartment at the ritzy One Blackfriars project on the banks of the River Thames is offering the two-bedroom home on the 20th floor for 1.8 million pounds ($2.44 million), more than 22 percent less than they agreed to pay for it in 2013.

One Blackfriars

Photographer: Robert Alexander/Getty Images

The seller, who’s from Asia, wants to offload the property before it’s completed, according to Christian Barr, new homes manager at MyLondonHome, who’s brokering the sale. Stamp duty is payable after a property’s construction is finished.

The good news for the seller is that there are two firm bids for more than the asking price, from English and Chinese investors, Barr said. He declined to disclose the level of the bids. The vendor wanted to sell within seven days, according to the email.

The stockpile of unsold London homes under construction rose to a record in the third quarter as developers ramped up supply. London was the worst-performing home market in the U.K. last year for the first time in more than a decade as values in the capital fell 0.5 percent, according to Nationwide Building Society. That’s the first full-year decline since the 2009 recession.

Price falls in London’s best central districts are rippling out as Brexit, mortgage constraints and concerns about future interest rate rises weigh on demand. Values in Fulham are now 14.4 percent below their 2014 peak, according to broker Savills Plc.

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