Sellers have slashed a total of £1 billion off the asking prices of homes for sale in London’s prime property hotspots.
An analysis from buying agents Garrington Property Finders, which looked at London’s 52 most desirable postcode districts, found the average property is listed at 9% below its original price, equating to an average price cut of £223,000.
The analysis reveals the discounts are greatest in the most expensive areas.
In the elite enclave of St James’s and Victoria, prices have been cut by an average of 14.1% or £765,919.
In Knightsbridge, asking prices have been slashed by 12.1%, equating to an average discount of £927,188.
The discounts are smaller in the more affordable end of the prime spectrum.
The average reduction on homes currently for sale in both Wandsworth and Kennington is a more modest 6.5%. In 2017, the average property sold in these areas went for 95% of its original asking price.
The immediate driver of such dramatic price cuts is softening demand. In six of the seven areas with the greatest reductions, more than half of the properties currently for sale have been on the market for over half a year.
Jonathan Hopper, managing director of Garrington Property Finders, said acute price sensitivity among buyers continues to force sellers to reduce their expectations, and in the most expensive areas this is throwing up some striking discounts.
“While the jury is still out on whether property prices in the rest of the country will follow prime London’s lead, such large discounts are creating opportunities for pragmatic and astute buyers – and we’re seeing renewed interest in the capital from both British and overseas buyers keen to pounce before prices recover,” he added.