Well London is a good place to wash some dirty money.
“The move toward homes geared at hipsters comes at a challenging time for luxury London property. Since 2014, the prime market has quieted thanks to a mixture of tax increases, Brexit and domestic political upheaval. New developments continue to go on the market, and developments started in around 2014 are coming to completion. Many early buyers are attempting to “flip” their purchases on to new owners. Discounting has become the norm, with buyers able to knock 5% or 6% of asking prices, said Nick Parr, a director at Knight Frank and specialist in new homes.”
If an EA is saying that you can bet it’s probably more like 20%
Prices still rising as volume contracts. Remind me again, in the Irish bust how long was after sales started contracting that we saw general prices drops, a year, six months, 18 months?
Oh, come on, this sounds like parody. Final-stage desperation, I suspect; this is probably London’s equivalent of the famous Belmayne ads:
Seems like a bust in London is coming alright. But the Government there will probably try to stave it off with tax measures. Unlikely to work.
Why are prices dipping in sydney/Melbourne , Auckland, Toronto , London around the same time? What is the common denominator?
Less “dirty money” to launder perhaps.
They are all hopelessly over priced in the first place?
The Chinese foreign property investment juggernaut finally ran out new entrants to support the pyramid?
There could be many answers to this question (i.e. what is the common denominator)?
The biggest single coordinated influence on the availability of money and thus on the impact of outcome of prices is the availability of credit (at least over the last 20 or so years). Right now it does begin to appear that the credit engine may be slowed down on a general international basis. This is my belief at the moment. There does seem to be enough credit available right now but it does seem to be slowing.
‘‘Cash flow from some projects has deteriorated’’ is a terrific euphemism for sales have tanked.
Reminds me of the time my uncle told me to describe his forthcoming death as ‘his health has deteriorated, but is getting no worse’.
This is all very reminiscent of the Japanese buying up America before the whole thing collapsed.
I wonder if this will affect the high end residential market in Dublin. My impression was that people returning from London having cashed in their properties accounted for a significant number of the high end transactions in the last number of years.
Hopefully it will offset any Brexodus to Dublin.
Ghost developments are more obvious when surrounded by fields, less so in a city.
Interesting/funny – the first two, an economist and an investor, believe the market is borked with sharp declines coming. The rest – all property market shills of one stripe or another – see the same headwinds but think prices will merely flatline. If only reporting of VIs opinions as news could be banned! The leopard never changes his spots.