Buying agent Johnny Turnbull claims that 83.2 per cent of the properties sold in prime central London in the second quarter of this year had price reductions.
His latest Turnbull Property market update reveals that in Q2, transaction levels were at their lowest level in over five years in the prime London market - and that is despite a sharp rise in deals done on the day after the EU referendum.
“Vendors, many of whom have yet to correct prices after the changes to stamp duty in December 2014, need to be more realistic and flexible to achieve a sale. Over 83 per cent of all properties sold in Q2 2016 had a price reduction from the initial asking price, with three-quarters of properties being reduced at the point of sale” he says.
Turnbull quotes Dataloft and Lonres information to compile his figures.
However, he says Brexit has a silver lining for prime central London sellers in that the consequent tumbling of the value of the pound has made areas of the capital even more attractive for overseas purchasers.
“The average property across prime London is now 11 per cent less expensive for an overseas buyer than on June 23 and thus for savvy overseas investors there are opportunities to purchase. The Japanese Yuan, Hong Kong Dollar and US Dollar have seen the most significant changes in fortune; those buying from Japan will find the average property is 15.3 per cent less expensive than on June 23” he says.