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Market is strong...lack of properties is making people pay silly money in Chelsea. Our team were having a chat yesterday in the pub and we are all worried about the back end of the year. It is amazing how many agents think it is going to go pear shaped.

Now time to go out!

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Well, most people don't really investigate the property market in much detail. You may or may not agree with the general bearish opinions on this site, but at least people look into the market and make a conclusion based on their research. For your average person, they look at the last 10 years, see a nice increasing house price curve and draw the conclusion that it'll continue. This is fortified by most of their friends' anectodes about making big money over the last 10 years. At the end of the day the housing market is not magical and the constraints that have always applied over the long term will bring everywhere, including Chelsea back to the market.

There's lots of talk about foreign money buying houses cheap because of the exchange rate. If people really move their money that fast into property because of exchange rates, we can expect to see a similar withdrawal from the market when the exchange rate reverses (as it will in due course, despite many people's predictions of currency collapse). That would hit the market hard - especially places like Chelsea I imagine.

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  • 4 months later...

Apologies for lack of explanation. The graph and indices represent pounds per square foot at the date of exchange and therefore some of the properties will not have even completed. Chelsea is showing resilience even though other areas are "softening" (if I have a chance I will post some others). Chelsea is an area very dependent upon inherited wealth and foreign buyers. Consequently, most owners are equity rich and if prices fall they can afford to sit tight.

James Wyatt FRICS

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I'd like to see the other areas. It surprises me that Chelsea isn't 20%+ ahead of 2007.

Apologies for lack of explanation. The graph and indices represent pounds per square foot at the date of exchange and therefore some of the properties will not have even completed. Chelsea is showing resilience even though other areas are "softening" (if I have a chance I will post some others). Chelsea is an area very dependent upon inherited wealth and foreign buyers. Consequently, most owners are equity rich and if prices fall they can afford to sit tight.

James Wyatt FRICS

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  • 2 weeks later...

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