Excited fresh property investors queued up overnight last summer to buy into the first phase of the prestigious Glasgow Harbour project, but now with values dropping some buyers are refusing to complete.

After the housing market slowdown, many of the first flush of buyers are not so keen on the reduced value of their investment and estate agents are refusing to take any more re-sales onto their books because the market is saturated.

In the slowing climate, Cala Homes, one of three builders at the site, is expected to take legal action this week against buyers who put down deposits on five flats last year but who are now refusing to pay the balance.

Some of the flats were being snapped up at £200,000 each and have increased in value since last year. But recently apartments, which sold at £250,000 last year, are now only valued at £240,000.

All 173 of Cala's contemporary urban apartments in the company’s first phase of development at Glasgow Harbour were reserved within ten days of the launch and the company has big hopes for further development in the regeneration area.

Glasgow Harbour has a unique combination of both West End and waterfront location, within easy reach of the city centre. The 120-acre site was, until recently mostly redundant shipyard and dockland.

Managing director David Gill said there had been no meltdown or mass rush away. "Values are certainly readjusting," he said. "If you look at a property you should always look at it as a long-term investment."