Buyers have paid 6% less than the asking price for new-build residential property in London since 2007, according to EGi London Residential Research.
The average marketed price for a new-build home was £457,346 during the period under review, compared with a sale price of £431,204.
However, the research reveals a large disparity across boroughs in terms of sales prices. Homes in four boroughs – Croydon, Ealing, Merton and Redbridge – were sold for at least 10% below asking price. Homes in Westminster and Brent were sold for just 3% lower than asking.
The years immediately following the recession saw the largest difference between asking and sale prices, while the buoyant market of the past four years has produced an average difference of just 3-4%.
The analysis also found that for large-scale phased schemes, sale prices were lower for the last units to be sold, compared with the first.
“After place making and the evolution of a successful scheme, you would expect the last units to be closer to asking prices. But higher asking prices, more expensive units and penthouses, as well as a desire to ‘finish’ developments, all drive prices down,” said Daniel Smith, analyst at EGi London Residential Research.
