Property slump hits Arsenal flats

Arsenal football club have fallen victim to the credit crunch after seeing the price of their Highbury development tumble.

The Premiership club was hoping to make £100 million profit from the 680 flats being built on the site of its former stadium.

However many reserved buyers may now cancel, preferring to forfeit a deposit rather than pay unrealistic prices.

The price of flats at Highbury Square rose dramatically since offplan sales began in October 2005.

Until this time last year it seemed those who reserved them early would make massive gains if they sold on without even moving in.

One-bedroom flats, which cost £230,000 in October 2006, rocketed to £325,000 a year later.

A three-bed penthouse, available for £1 million two years ago, was up to £2 million by October last year.

However, only 65 completed units have now been sold, totalling £18.7 million in revenue.

The club had hoped to make £350 million of sales, helping to reduce the £318 million debt it racked up moving to the new Emirates Stadium.

An Arsenal spokesman said: "92 per cent of the development is presold with deposits paid ranging from 10 to 20 per cent.

"Speculation suggesting that many purchasers have walked away from their deposits is completely untrue."

Former Arsenal star Robert Pires was one of the first buyers.