Sunday, Mar 12, 2017

Damn that pesky Brexit

Zero Hedge: Manhattan Luxury Housing In Freefall: J.Crew CEO Slashes Tribeca Loft Price By Over 40%

If the downturn in London property is because of Brexit .... then why is it happening everywhere? Manhattan, Los Angeles, Vancouver, Hong Kong, you name it....
The answer is it's nothing to do with Brexit! It's because of capital flight controls in China and all the other factors we know well: rising US Dollar interest rates, Russia sanctions, oil crash etc etc
But no doubt what's happening in London will be myopically attributed to Brexit. I read elsewhere that Nine Elms bee builds are being offered "cheap" but in reality even down 30% they are still expensive. Who are the buyers if offshore buyers can't cough up any more? The answer is onshore buyers, but only at prices they can afford and they are much lower... the market will clear but not up here.

Posted by sneaker @ 10:09 AM (5455 views) Add Comment

2 Comments

1. libertas said...

Reality is that the higher stamp duty rates took in more than expected and look at the inflation adjusted house price chart on these page show that house prices are about to bust up above their long term average, as they always do. Could it be that we are about to see massive, out of control wage price inflation, as our booming economy finally does not have over half a million new people per year to fill posts?

Where I work in London we are struggling to fill posts with experienced people and are sucking in graduates for the first time in years. Meanwhile, wages are going up, even in local authorities where wage price hike blocks are being circumvented by regrading.

I am horrified to think that we may begin to import gmo food from America, but that trade deal will cause an exodus of producers from Europe to the Uk to benefit from lower tariffs to America.

Sunday, March 12, 2017 11:31AM Report Comment
 

2. icarus said...

er, the apartment went for $14.3m in 2012 and now he's asking $19.95m for it. The fact that he asked $35m for it at some point in time between those figures tells us more about him than about the market.

And just look at the place. People paying that kind of money want something classier than that.

Sunday, March 12, 2017 01:49PM Report Comment
 

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