London has popped.


#101

Well London is a good place to wash some dirty money.


#102

mansionglobal.com/articles/6 … home-sales

“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.”


#103

If an EA is saying that you can bet it’s probably more like 20%


#104

ftadviser.com/property/2017 … -per-cent/

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?


#105

Oh, come on, this sounds like parody. Final-stage desperation, I suspect; this is probably London’s equivalent of the famous Belmayne ads:


#106

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.


#107

bbc.co.uk/news/business-40529560


#108

Why are prices dipping in sydney/Melbourne , Auckland, Toronto , London around the same time? What is the common denominator?


#109

Less “dirty money” to launder perhaps.


#110

They are all hopelessly over priced in the first place?


#111

The Chinese foreign property investment juggernaut finally ran out new entrants to support the pyramid?


#112

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.


#113

bloomberg.com/news/articles/2017-07-10/carillion-ceo-steps-down-after-first-half-profit-misses-goal

‘‘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’.


#114

telegraph.co.uk/business/201 … es-london/


#115

This is all very reminiscent of the Japanese buying up America before the whole thing collapsed.


#116

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.


#117

https://www.global-guardians.co.uk/wp-content/uploads/2017/06/The-number-of-vacant-properties-in-London.png

global-guardians.co.uk/news- … is-london/

Ghost developments are more obvious when surrounded by fields, less so in a city.


#118

bloomberg.com/news/articles … ppens-next


#119

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.


#120

Couple of articles from the Telegraph…

More than a third of homes for sale in London have asking prices slashed
telegraph.co.uk/property/hou … s-slashed/

The buy-to-let stampede begins: ‘How best to sell my 37 properties?’
telegraph.co.uk/personal-ban … roperties/