From The Guardian:

London 3

The first real signs of distress in the market for luxury London apartments are starting to emerge, as investors who agreed to buy homes off-plan are starting to sell them on for less than they agreed to pay for them. …

George Shishkovsky, managing director of LondonDom, insisted the sales were not a result of the UK’s Brexit vote or a fall in confidence in the market. “It’s all about people’s circumstances,” he said. “Usually people buying off-plan do so two or three years before completion and in that time circumstances can change.” …

Henry Pryor, who buys homes in London for wealthy clients, said he believed that the top end of the market had peaked and that currency gains wouldn’t make up for the fact that many flats had simply been overpriced: “Sterling-based property may be 10% cheaper for foreign buyers but much of it was 30% overpriced.” He added: “Expect to see more of this as the post-Brexit [vote] reality bites.” …

Reports suggest there has been a sharp slowdown in the number of sales in London’s new-build market. According to research by consultancy firm Molior London, developers sold 4,600 new-build homes in the April to June period including off-plan sales, a 23% fall from the figure of just under 6,000 in the first quarter of the year.  …

Durrani said the prime central London market had been slowing for more than a year, but had been “amplified” by the referendum result. “We are at the stage where a slight correction was inevitable and may actually be positive for the market. It will help with affordability issues and may in fact help with the long stalled natural recycling times of property on the market, resulting in a more regular level of transactions,” he said. …

The French bank Société Générale said last week that prices in London’s most expensive boroughs could slump by as much as 50% in the wake of the vote for Brexit.

Full story here.