The latest data released by new homes sales platform, Unlatch, highlights where London’s new-build premium hotspots are and where, therefore, housebuilders stand to make the most profitable investments.
In London’s SW3 postcode area - covering Chelsea - the average existing home costs £1,690 per sq ft. Meanwhile, the average new-build costs £2,988, an extraordinary premium of 77%.
In W8 - Kensington - the average existing home costs £1,555 per sq ft while the average new-build is 75% more expensive at £2,714. In NW8 - around the St. John’s Wood area - existing homes cost £1,093 per sq ft while new-builds command a price of £1,876; a premium of 72%.
Significant new-build premiums are also available in W14 (66%), E1 (63%), W12 (59%), SE18 (56%), WC2 (55%), RM1 (50%), and RM7 (48%).
All in all, there are 96 London postcode areas where new-build developers can command a bigger premium than the UK’s average of 11%.
Lee Martin, Head of UK for Unlatch, says: “The new-build premiums available in London are extraordinary. It’s Britain’s most truly global city and a desirable buying location for monied people from all corners of the world. The city also has a shortage of space and a need for new homes. As such, building vertically is the only real option.
"This, of course, suits new-build developers nicely who, when they choose their urban locations correctly, can benefit from the massive premiums that buyers are willing to pay for quality, well-located homes.
"It is also worth noting that the existing homes statistics are taken across the board and include both houses and apartments, whilst the new build figures are predominantly apartments which take up less square footage. Therefore, by rule of thumb, the smaller the property, the higher the £psf.”
