Spring Bounce – There are signs that the capital’s new-build flats market is set for a recovery (Tim Craine)

http://www.propertyweek.com/story.asp?sectioncode=530&storycode=3139385 – results of a comprehensive survey into Residential Development in London.  Key snippets below:

“Schemes are not revealing excessive horror stories of failed completions. ‘Negative’ sales rates were lower in the first quarter of 2009 than in the final quarter of 2008. However, there is a lot of forced-renting of completed unsold stock.

Sales rates rose 68% from a low base in the first quarter and increases were concentrated in a growing minority of schemes that have accepted current market pricing.

An increasing number of schemes are achieving sales rates that would be enjoyed in normal market conditions – these are promoted by developers willing and able to price to current market levels.

In late 2008, it was not clear how far prices had to fall before normal sales rates could resume. Now we are certain it is 25%-30% off peak 2007 prices.”  Tim Craine, Molior London

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