Nearly half of all residential units under construction in London have been snapped up before completion, according to new data. CBRE, one of the world's leading commercial property advisers, stated that the fact that 48 per cent of units in the capital have already been sold is indicative of buoyancy in the market.
This rate, the CBRE acknowledged, is astonishing, surpassing even the levels set in the years running up to 2007. This was when the market was at its peak. As such, demand for new homes in London is stronger than ever.
It was noted that the schemes that have been selling like "hotcakes" are the largest, averaging around 100 units. The suggestion here is that astute investors are buying in bulk while the rental market remains healthy. It's about making the most of a good period.
"Nearly all [schemes] have benefitted from sales from overseas buyers, as South East Asia continues to play a key role on the early stages of release," discussed Mark Collins, head of residential at CBRE. "This is essential to give large developments a boost from the outset."
He added that with a considerable volume of units envisaged to sell over a long period of time, it is essential to generate confidence in the initiatives from the outset: "This trend is encouraging given the number of large – and indeed strategic – sites coming forward, which can help unlock housing delivery on scale in the capital."
Mr Collins also highlighted the growing strength of the capital's rental market by virtue of the reality of sales figures. Most of the fastest selling schemes have, after all, been reserved for use in this market and/or sold to investors for this sole reason.
The CBRE recently revealed that in the last quarter of 2012, central London's property investment market experienced the third highest transaction volume on record, with the city raising £14 billion in capital.