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London Luxury-Home Building Boom Erodes Pricing Premium
A surge in luxury homebuilding in London is eroding the premium that developers can charge buyers to acquire a new property.
Average sales prices of new apartments in London’s most expensive districts exceeded those of older flats by 43.1 percent at the end of the first quarter, down from 67.6 percent in 2012, according to a report by London-based broker Huntly Hooper Ltd. An increase in construction combined with a weaker property market may reduce the gap further during the year, Oliver Hooper, director of Huntly Hooper, said in the statement.
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