Up to £2 million knocked of asking prices as investors dry up and hotel scrapped
As foreign investors flee and stop investing in prime property in London, asking prices for the houses and flats in the prestigious Battersea power station development have been slashed. The main cause is a collapse in oil prices around the world,a slow down in the Asian economy plus a massive oversupply of luxury properties being build in London.
The developers have slashed prices by up to 38% in the last few months. a four bedroom townhouse on the site was listed in July last year for £6m, but was reduced to £4m in January. Another flat on the site which originally went on sale at £850,000, is now available for £600,000.
A Battersea Power Station spokesperson said: “Some of our purchasers have decided to re sell their properties; as far as we are aware, in the first phase, only 10% have reassigned and they have enjoyed a growth of on average 30%.”
Plans to build a hotel have also been scrapped and replaced with plans to build another 400 flats.
“The amendments to the masterplan will deliver more new homes that will meet London’s demand – houses for single people and couples, working and living in London,” documents filed to Wandsworth Council by Battersea Power Station Development Company (BPSDC) said.
“The aspiration is to provide more homes at appropriate sizes at Battersea Power Station, which in turn will seek to make homes at the site accessible to more people. The amended proposals aim to ensure that the site is lived in and enjoyed by more people, and help more Londoners to get a foothold in the Opportunity Area.”
The company says homes are selling well, despite news prices had to be slashed as demand for luxury homes in the capital waned.
A spokesperson from BPSDC, said: “The application to create an additional 400 homes by converting space originally allocated for a hotel and serviced apartments underlines the continuing strength of demand we are seeing for properties at Battersea Power Station. People buying at Battersea Power Station have seen average growth rates of 30 per cent or more, and with the arrival of the new Tube station and wider improvements to the area these growth rates show no sign of abating.”