Sunday, 2 July 2017

38% off the ask on a Hammersmith development

£3 mil/ 38% knocked off the ask within a week of starting to market this. Still asking 5m for a sub 3k sq ft apartment  though...

They have probably missed the window to sell to Chinese off plan, not sure who else would pay almost £2k/ sq ft for an apartment in Hammersmith, albeit it looks like a nice design and fit out.

At about 2800sq ft the direct build costs might be circa £500k, plus maybe £100-200k to nicely fitout and appoint the interior, furnished. The ~20% in social housing costs and ~25% for developer margin and 5-10% for some other costs. That gets you to £1.1m or £1.20m or something like that, add in some reasonable land value and you are talking £1.5-1.75m fair value, or £600-650/sq ft.

http://www.mouseprice.com/property-for-sale/ref-30633579/faulkner+house+fulham+reach+london+w6+

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