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The Masked Tulip

'prime' House Prices May Crash Harder Than The Rest

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'Prime' house prices may crash harder than the rest

However, I have just also been sent some even more interesting numbers from estate agent John D Wood. These track not completion but exchange prices of London houses, and so are much more up-to-date than most. They also prove that prime prices are not remotely resilient.

In the last quarter the price of a house in Kensington or Holland Park has fallen by around 18%, while that of a flat is down just under 8%. Houses haven't fared so badly in Notting Hill, but they are still down by 9% or so. Also of interest is the price of so-called large houses (3,500 square feet plus) across the capital: for these "the second quarter has witnessed values falling back by 8.5%."

This is all something poor Kylie Minogue has recently discovered to her cost. According to the Daily Mail she has just cut the price of her Kensington pad by a massive £500,000 in an attempt to get it away. And that's despite the fact that she is a mega celeb and the fact that the place was "refurbished to Miss Minogue's exact specifications by renowned interior designers and developers Candy & Candy five years ago."

http://www.moneyweek.com/blog/prime-house-prices-may-crash-harder-than-the-rest-00239.aspx

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I have just received the latest instalement from a London search agent I know.

Apparently 70-80% of all purchases over £2m are being made by overseas purchasers. Effectively UK buyers have been priced out.

So the reason Prime London property is in its own world is due to the weakness of the £. :ph34r:

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...In the last quarter the price of a house in Kensington or Holland Park has fallen by around 18%...

that specific figure may or may not be right & regional differences do exist but generally speaking the smaller the area you focus on the more unreliable house price stats are IMO... if you looked at them for all of London you'd probably find some boroughs implausibly increasing by 25% in a quarter [i.e. implying that one quarter of the entire value of a pwoperdee has been magicked out of thin air during this summer] with others equally implausibly falling by 25%...

that said, i am with MSW in being annoyed at fatuous comments to the effect that 'prime' prices are locked into a perpetual hyperinflation. it's one thing to say that such places are worth a lot of money, which is undoubtedly true, but suggestions that a year ago they must inevitably have been worth a double digit % less than they are now, or equivalently that in a year's time they will inevitably be worth a double digit % more are the stuff of London estate agents' bedtime stories and no more than that.

Edited by the flying pig

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Wouldn't be surprising, given the utterly ludicrous prices some of them have been fetching. Think of a number and double (or treble) it seems to have been the pricing strategy. All those Russian squillionaires with more money than sense, etc...

I posted on another thread a while ago about a house not a million miles from me, on for £5M, big feature in weekend paper, eventually sold for just over £2.8M.

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search on rightmove today

within 3 miles of WC1

More than 1000 properties over 2m for sale

1500 more between 1m and 2m.

within 10 miles there are over 1000 pwoperties over 3m !!!

That's a whole lot more than a year's supply on the market.

Hope there are a lot of foreign buyers who want to lose some more money on a sterling asset.

Edited by bajista

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I'm OK with that! If you buy a "prime" house you can probably afford to lose it a bit, more so than most!

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  • 261 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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