Hutchison Whampoa has released a second batch of penthouses on the market at its Albion Riverside development in south London in the latest in a series of apartment projects launched by developers in London in recent months. Seven penthouses valued at between GBP3 million (HK$42.69 million) and #10 million were offered for sale. However, analysts raised concerns over a short-term oversupply in the market. They said too many flats were being built, because most buyers wanted houses. Albion Riverside's penthouses range from 3,000 square feet to 8,500 sqft, have double height ceilings, roof terraces and views of the Thames river. Eighty-five per cent of the 183 apartments and 13 penthouses at the Battersea project found buyers in earlier launches. The mixed-use project also includes shops, restaurants, an art gallery and the Hong Kong developer's 36,000 sqft European headquarters. Other recent apartment launches in Battersea include Senses, where developer Berkeley Homes is building 300 apartments, and Falcon Wharf where developer George Wimpey is constructing 124 flats. Estate agent FPDSavills said too many flats and not enough houses were being built in areas such as Battersea. Five years ago, flats accounted for 17 per cent of all housing output in Britain, now it was approaching a 'staggering' 40 per cent, it said. The island at Brentford Lock is a rare example of new houses being built in London. Developers Crest Nicholson and Charles Church are building 20 houses in addition to 173 flats at this west London scheme. Prices for the four-bedroom houses start at GBP799,950. Head of residential research Richard Donnell said: 'Creating high-density places that are attractive to occupiers is a real challenge.' He said apartment prices could weaken if investors, a key source of demand for this type of property, dropped out of the market, but house values would remain strong supported by low supply and high owner-occupier demand. Hutchison Whampoa believed Londoners' changing tastes meant apartments would remain in vogue. Marketing manager James Barrett said: 'People are coming to prefer horizontal living with rooms flowing into each other all on one floor which gives more flexibility and a greater sense of space. People may think they want a traditional house but often can be quickly converted when they see equivalent square footages on one floor in an apartment. 'Apartment living can be more practical and suits people wishing to avoid the need for stairs. The security features and range of facilities within a new development are also key selling points. Some buyers at Albion Riverside have sold houses in Chelsea or Chiswick to move there. 'In addition, a vibrant location and good views are key considerations and some of the new apartment schemes coming on the market along the river are unbeatable in this respect.' Robert Hadfield, analyst at landlords website residentialinvestoralert.com, said this love affair with high-rise living would end. 'Urban style flats are currently fashionable for both the occupational and investment market, but ultimately people want houses with gardens,' he said. 'This was the big demand from tenants in municipal housing in the 1970s and I suspect that private-sector buyers and renters will go the same way over the next few years.'