Take note, New York City developers: London home sales are going up following a decision by developers to lower asking prices for the first time in years.
The last time developers across the pond lowered asking prices was in 2010, according to Bloomberg. During the first quarter, about 6,900 homes under construction were sold, which is the most in three years. Institutional investors interested in rental properties bought about 30 percent of the homes.
Rising prices have made it harder to buy a home in London recently, leading more a rising number of residents to rent. However, property prices dropped in the city for the first time since 2009 in February, falling 1 percent from a year earlier.
There are currently 66,000 properties being built in London, and 44 percent of them remain unsold. It will take about 1.1 years to clear up the supply based on current sales rates.
In Manhattan, year-over-year sales fell by 24.6 percent in the first quarter of 2018, dropping to 2,180 for the largest annual decline in nine years, according to a new report from Douglas Elliman.
[Bloomberg] – Eddie Small