A total of £722m of London development land sales completed in the second quarter of 2017, up 48% on the first quarter, according to CBRE research.
Although it was the most active quarter of the past 12 months, Q2 was still 20% below the five-year average of £900m.
Development land sales took a hit following the EU referendum, with Q3 2016 volumes tumbling 79% quarter on quarter in the biggest three-month fall of the past five years.
The rebound in Q2 was driven by overseas investors, who accounted for 85% of all development land transactions in the capital.
Peter Burns, managing director of UK development at CBRE, said: “We expect overseas investors to remain a dominant presence in the London market, attracted by the capital’s underlying strengths whilst also capitalising on the exchange rate benefits.
“As this quarter has shown, there is considerable appetite for larger lot sizes from overseas buyers as well as significant demand from both domestic and overseas buyers for small lot sizes in prime locations where supply is constrained.”
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