Resales of New Builds Listed at Discount from Contract Price

Published: 11 January 2017 - Updated 10 March 2017

Lately, we have been spotting property listings suggesting that the seller is willing to sell their off-plan/new-build at a price that is under the original developer's contract price. We quickly jotted down a few examples of the listings and will update this list from time-to-time.

This information helps us to understand the market. Typically, the original purchase price of an "off-plan" property is opaque as the transaction only appears in the Land Registry when the development/unit is "completed". Property listings of "distressed sellers" wishing to resell (re-assign) their contract before the completion of the apartment can provide an insight into the original purchase price from the developer. This data can be used to predict pricing trends and weakening in uncompleted developments in London.

One word of caution, we have not verified the content in the listings nor verified the agencies making the claims. Consumers should speak directly with the agents to ensure the interpretation of the listing is correct.

Vista Chelsea Bridge

■ Listing for 2-bedroom, 11th floor apartment, listed for £1,065,000 states "At a discount from the developer's price from 2013". This suggests that initial developer price may have been over the current price of £1,237 per/sqft.

■ Listing for 2-bedroom, 1st floor apartment, listed for £1,100,000 states "Re-Sale offered BELOW contract price!". This suggests that initial developer price may have been over the current price of £1,167 per/sqft.

Lower floors and obstructed views typically sell for less than upper floors with unobstructed views.

■ Listing for 2-bedroom, 12th floor apartment, listed for £1,200,000 states "BARGAIN! We are selling this off plan re-sale BELOW contract price". This suggests that initial developer price may have been over the current price of £1,349 per/sqft.

■ Listing for 2-bedroom, 12th floor apartment, listed for £1,200,000. We were unsure if this is a duplicate listing from the one above - same flat, same agency - perhaps an overight?

■ Listing for 2-bedroom, 6th floor apartment, listed for £855,000. states "At a discount from the developer's price from 2013" leaving us unsure if it is under the contract price or simply the developer's price at that time.

■ Listing for 3-bedroom, 5th floor apartment, listed for £1,400,000 states "At a discount from the developer's price....". This suggests that initial developer price may have been over the current price of £1,292 per/sqft.

The apartment appears to be Sold STC as noted on the listing.

■ Listing for 3-bedroom, 3th floor apartment, listed for £1,399,950 states "Available at a discount from the developer's contract price...". This suggests that initial developer price may have been over the current price of £1,338 per/sqft.

The apartment appears to be Sold STC as noted on the listing.

■ Listing for 1-bedroom, Podium level apartment, listed for £660,000 states "Available at the developer's price from 2013, a 558 sq ft (52 sqm) podium level one bedroom apartment, with a quiet aspect overlooking landscaped gardens, available for off-plan investment sale for completion in late 2016.". This suggests that initial developer price may have been over the current price of £1,183 per/sqft.

The apartment appears to have been removed shortly after posting the listing on 3 December 2016.

■ Listing for an entire portfolio of properties for £8,500,000. The portfolio amounts to 6,985 square feet of space which is equal to £1,217 per/sqft. The buyer could potentially take advantage of a stamp duty savings as the purchase involves multiple units.

This listing has not noted the purchase price to be discounted from original contract price and only appears here for comparison purposes.

According to the listing, the portfolio consists of
1 bedroom 11th floor 549 Sq Ft
2 bedroom 6th floor 821 Sq ft
2 bedroom 13th floor 821 Sq Ft
2 bedroom 11th floor 861 Sq ft
3 bedroom 1st floor 1174 Sq ft
3 bedroom Ground floor 1303 Sq Ft
3 bedroom Ground floor 1456 Sq Ft

Riverlight 5

■ Listing for 3-bedroom, 8th floor apartment, listed for £1,585,000 states "Available at a £100,000 discount from the developer's contract price...". This suggests that seller purchased at developer's price of £1,462 per/sqft.

We were uncertain if the agent mistakenly listed the property twice as there may be a duplicate listing here:

Riverlight 5 is the last building of the Riverlight Scheme. Buyers of off-plan may have purchased at higher prices from the developer due to the success of earlier buildings. See our research on Riverlight: Investors At Risk as Prices Dip Below 2013 Levels in Nine Elms Scheme for more information

The Corniche, 20 Albert Embankment

■ Listing for 3-bedroom, 20th floor apartment, listed for £4,999,950 states "At a discount from the contract price...". This suggests that seller purchased at developer's price of over £2,420 per/sqft.

■ Listing for Merano Residences 3-bedroom, 15th floor apartment, listed for ££3,895,000 states "Available at over a £300,000 discount from the developer's price...". Unclear if this is a resale or direct from developer. The current price per square foot is £1,498 per/sqft.

■ Listing for Merano Residences 3-bedroom, 14th floor apartment, listed for £3,895,000 states "Available at over a £300,000 discount from the developer's price...". Unclear if this is a resale or direct from developer. The current price per square foot is £1,492 per/sqft.

Abell and Cleland Development in SW1

■ Listing for 2-bedroom, lower ground floor apartment, listed for £1,825,000 states "At over a £200,000 discount from the contract value...". This suggests that seller purchased at developer's price of over £1,300 per/sqft. Now priced at £1,163 per/sqft.

Lower floors and obstructed views typically sell for less than upper floors with unobstructed views. Compare this SW1 location with the Battersea price above. Notice the price per square foot differences.

■ Listing for 2-bedroom, 9th floor apartment, listed for POA states "ALL REALISTIC OFFERS CONSIDERED - Under instruction of the receivers, offers are invited (at a significant reduction from the contract price) for this ninth floor garden facing apartment (with secure parking) in Abell House. ". Was previously priced for just under £2million.

One Blackfriars, Bankside, London

■ Listing for 2-bedroom, 35th floor apartment, listed for £2,450,000 states "At a £250,000 discount from the developer's price and the highest apartment for sale in One Blackfriars ...". This suggests that developer's price was £1,818 per/sqft as opposed to the current price of £1,649 per/sqft

Rectangular Building, City North, Finsbury Park, N4

■ Listing for 1-bedroom, 12th floor apartment, listed for £450,000 states "This apartment is being offered at a significant discount to the developer's price list! ...". /sqft. This left us uncertain if the property is a resale or simply reduced by developer.