miko Posted April 12, 2011 Share Posted April 12, 2011 BBC London Regional News had a report that the London property market is booming . Led by Banker money and foreign money which is worth about 25% more due to the drop in the value of the £. They were talking about sealed bids on rentals and sales prices rising . Mentioned central and prime London a few times , but never said if this was across the capital or just a few sort after area's. After watching I went on NET house prices .com the govenment site which lists all sales prices acheived. As I lived in East London untill a few years back I put in a few of the post codes where I had lived . In two of them there had not been a sale listed for this year and on one development of 700 units there were only a few for last year . I know the rental market is very busy in East London and people are out bidding each other on rent's. However going by sales figures very little is selling , asking prices have not fallen much if at all , but no sales means that things are over priced . Quote Link to comment Share on other sites More sharing options...
tboy Posted April 12, 2011 Share Posted April 12, 2011 It's true. Much as I hate to say it. I've lived (renting) in Central London for 10 years plus, I've moved around several times, and I even nearly bought a couple of times. I like to think I know the rental and sales market fairly well....in my area, it's out of control. Stuff is up I reckon 20% over the last couple of years if not more on the nice stuff, and it really is selling. I'm desperate to buy a place but just can't bear to pay the price!! It's definitely banker money, I'm in the City and friends and colleagues are def buying...not in droves like in 2007 at the clear top, but definitely happy to trade up, or buy a nicer place. I get the impression none of them sell either, just rent out the current place. How depressing....and also, rents are up a lot also, it's crazy how little you get for the money...this was not the case in 2009, when the rental market was VERY soft (and I last negotiated on my rent). Quote Link to comment Share on other sites More sharing options...
yekim1967 Posted April 12, 2011 Share Posted April 12, 2011 Booming, ha ha, I am looking at buying at the moment in London and the market is DEAD. Stuff on the market a long time, prices being reduced and sales falling apart because sellers and buyers are both pulling out. Mortgage brokers, agents and surveyors are desperate for work. There is a definite lack of buyers, its not the lack of mortgage availability but just no buyers with decent jobs or incomes. Lots of places are empty with no tenants, there is no housing shortage if these people sold there places. Places are really presented well to attract buyers, but its not working. Asking prices are too high, some people asking at 2007 and above prices, but also stuff on at 2005-2006 prices and not selling either. Quote Link to comment Share on other sites More sharing options...
miko Posted April 12, 2011 Author Share Posted April 12, 2011 (edited) Well post 2 and post 4 give a completley different picture to each other . The BBC news spoke about London but mentioned Central London a few times , they did not say if their findings were across the capital or not . Could post 2 and 4 please say where in London they have been looking . Read a report last week from an agent in Surrey Quays who said prices were down 20% from peak . So maybe London has many different markets. Edited April 12, 2011 by miko Quote Link to comment Share on other sites More sharing options...
Timak Posted April 12, 2011 Share Posted April 12, 2011 Friends just sold in Tooting - lost nearly 20% over the 3 years they owned it. Quote Link to comment Share on other sites More sharing options...
tboy Posted April 12, 2011 Share Posted April 12, 2011 Islington. And I'm talking the ~500k-£1.5mm range. This is my impression from looking at rightmove using property bee....high asking prices and stuff is moving. + i have a good idea of what the current place i'm in would sell for compared to 2-3 years ago (15-20% I reckon). And City guys are buying across Central London. Quote Link to comment Share on other sites More sharing options...
the_duke_of_hazzard Posted April 12, 2011 Share Posted April 12, 2011 People with money are buying expensive property in London. The rest is going to sh1t. Quote Link to comment Share on other sites More sharing options...
yekim1967 Posted April 12, 2011 Share Posted April 12, 2011 Blackheath and Greenwich. Quote Link to comment Share on other sites More sharing options...
miko Posted April 12, 2011 Author Share Posted April 12, 2011 Islington. And I'm talking the ~500k-£1.5mm range. This is my impression from looking at rightmove using property bee....high asking prices and stuff is moving. + i have a good idea of what the current place i'm in would sell for compared to 2-3 years ago (15-20% I reckon). And City guys are buying across Central London. It looks like the top end is still on the up and up and pulling away from the rest . Maybe parts of London are a market in themselves divorced from the rest of the country and divorced from other parts of London like south and east that are now dropping. Quote Link to comment Share on other sites More sharing options...
miko Posted April 12, 2011 Author Share Posted April 12, 2011 People with money are buying expensive property in London. The rest is going to sh1t. I think your are right on that one it does look that way . Super Prime will carry on going up the rest is going to go the same way as most of the country DOWN. Quote Link to comment Share on other sites More sharing options...
Oliver Sutton Posted April 12, 2011 Share Posted April 12, 2011 People with money are buying expensive property in London. The rest is going to sh1t. I've heard from someone in the know that a lot of Arab money is heading into the London property market due to all the turmoil out there. Quote Link to comment Share on other sites More sharing options...
coenbmw Posted April 12, 2011 Share Posted April 12, 2011 I don't have any idea on general figures about London, but i can give anecdotal about my own case. I was looking to buy a flat in Royal Docks (E16) and had several ones on my Rightmove wish list. I completed my purchase some days ago, but notice all the other flats from the list are now 'under offer" or "sold stc". Maybe this is the "Cable car effect", so it can be not relevant. Maybe some of the purchases will not be completed too. PS: sorry for my poor english, i'm foreigner. Quote Link to comment Share on other sites More sharing options...
miko Posted April 12, 2011 Author Share Posted April 12, 2011 I don't have any idea on general figures about London, but i can give anecdotal about my own case. I was looking to buy a flat in Royal Docks (E16) and had several ones on my Rightmove wish list. I completed my purchase some days ago, but notice all the other flats from the list are now 'under offer" or "sold stc". Maybe this is the "Cable car effect", so it can be not relevant. Maybe some of the purchases will not be completed too. PS: sorry for my poor english, i'm foreigner. Yet I hear a new Barratt development in that area is only selling two flats a month , they have 500 to sell so it is going to take them 20+ years at that rate . Quote Link to comment Share on other sites More sharing options...
TeddyBear Posted April 12, 2011 Share Posted April 12, 2011 . I get the impression none of them sell either, just rent out the current place. Still very much the case for those who can raise the mortgage finance. Government appears to have no will or courage to tax the lettings market properly. Quote Link to comment Share on other sites More sharing options...
tboy Posted April 12, 2011 Share Posted April 12, 2011 I don't have any idea on general figures about London, but i can give anecdotal about my own case. I was looking to buy a flat in Royal Docks (E16) and had several ones on my Rightmove wish list. I completed my purchase some days ago, but notice all the other flats from the list are now 'under offer" or "sold stc". Maybe this is the "Cable car effect", so it can be not relevant. Maybe some of the purchases will not be completed too. PS: sorry for my poor english, i'm foreigner. I would have thought Docklands/Canary Wharf wasn't doing so well, seems like the banks are generally moving back into the City and shunning the wharf. That area is universally hated by bankers as far as I can tell. Quote Link to comment Share on other sites More sharing options...
coenbmw Posted April 12, 2011 Share Posted April 12, 2011 Yet I hear a new Barratt development in that area is only selling two flats a month , they have 500 to sell so it is going to take them 20+ years at that rate . Yes i can see this one, but the development is far to be finished, personnally i would never buy a flat before it's built, too risky. Quote Link to comment Share on other sites More sharing options...
Si1 Posted April 12, 2011 Share Posted April 12, 2011 People with money are buying expensive property in London. The rest is going to sh1t. I've heard from someone in the know that a lot of Arab money is heading into the London property market due to all the turmoil out there. sounds to me, along with precious metals, like an ill judged foray into inflation-protection Quote Link to comment Share on other sites More sharing options...
ralphmalph Posted April 12, 2011 Share Posted April 12, 2011 People with money are buying expensive property in London. The rest is going to sh1t. North of the Watford Gap maybe going to sh1t but you go anywhere within commuting distance of London and I include places 100 miles from London and this is having a knock on effect. There are people from London having sold houses that are moving out for decent state schooling. They all say the same thing schools in London are war zones and they are paying top dollar for any family property in the catchment area of a good state school. They may not earn banker money but they bought London property pre 2005 and are using this to pay top dollar outside. The market in the south of England is definately being distorted due to the influx of foreign money in London. Quote Link to comment Share on other sites More sharing options...
yekim1967 Posted April 12, 2011 Share Posted April 12, 2011 I don't have any idea on general figures about London, but i can give anecdotal about my own case. I was looking to buy a flat in Royal Docks (E16) and had several ones on my Rightmove wish list. I completed my purchase some days ago, but notice all the other flats from the list are now 'under offer" or "sold stc". Maybe this is the "Cable car effect", so it can be not relevant. Maybe some of the purchases will not be completed too. PS: sorry for my poor english, i'm foreigner. I just looked on rightmove using property bee, and lots of reductions in Royal Docks, and stuff on the market many months. here is one, there are lots more... 14 November 2010 20:05:31 Price changed: £649,995 £625,000 08 July 2010 09:59:50 Status changed: New Premium Listing 17 June 2010 09:57:57 Price changed: £650,000 £649,995 16 June 2010 09:54:16 Price changed: £675,000 £650,000 28 May 2010 15:24:45 Status changed: Premium New Listing 21 April 2010 09:03:47 Brief Description found: MUST SEE PROPERTY A rare to the market three double bedroom penthouse apartment with a glorious roof terrace offering far reaching views over The River Thames. This large duplex apartment has been upg... Price found: £675,000 Status found: Premium Listing Title found: Barrier Point Road, E16 Quote Link to comment Share on other sites More sharing options...
miko Posted April 12, 2011 Author Share Posted April 12, 2011 Yes i can see this one, but the development is far to be finished, personnally i would never buy a flat before it's built, too risky. But many people do so it shows a slowdown in the market. Quote Link to comment Share on other sites More sharing options...
coenbmw Posted April 12, 2011 Share Posted April 12, 2011 I just looked on rightmove using property bee, and lots of reductions in Royal Docks, and stuff on the market many months. here is one, there are lots more... 14 November 2010 20:05:31 Price changed: £649,995 £625,000 08 July 2010 09:59:50 Status changed: New Premium Listing 17 June 2010 09:57:57 Price changed: £650,000 £649,995 16 June 2010 09:54:16 Price changed: £675,000 £650,000 28 May 2010 15:24:45 Status changed: Premium New Listing 21 April 2010 09:03:47 Brief Description found: MUST SEE PROPERTY A rare to the market three double bedroom penthouse apartment with a glorious roof terrace offering far reaching views over The River Thames. This large duplex apartment has been upg... Price found: £675,000 Status found: Premium Listing Title found: Barrier Point Road, E16 To be more precise, i speak about Britannia Village, where the prices are around 220-250k for a 2bed flat. The ones you show are out of my range. Quote Link to comment Share on other sites More sharing options...
@contradevian Posted April 12, 2011 Share Posted April 12, 2011 To be more precise, i speak about Britannia Village, where the prices are around 220-250k for a 2bed flat. The ones you show are out of my range. 2 beds have been about that price for some time. Ten years ago I lived in Galleons E16 (across the river from you) and that was what they were going for. Met quite a lot of smug BTL types who thought they were on a nice little earner. Prices were depressed due to so much development, then they went crazy and fell back again. Rents have risen quite a lot. Quote Link to comment Share on other sites More sharing options...
bajista Posted April 12, 2011 Share Posted April 12, 2011 (edited) People with money are buying expensive property in London. Not as many or as expensively as the VIs would have you believe. Sunday Times this week did a check on what the Candy brothers claimed they had sold for and how many in their loverly park block of flats. land registry apparently told a different picture...... But the best evidence is a combination of HSBC's research on £1m properties published a year or so ago combined with Rightmove today. Apparently over 15 years the average number of £1+ residential properties sold in all of London was less than 2000 per year. Ok, this is an average and the number is greater for the later years ( around 3500 in 2007 I found quoted elsewhere) but it isn't many is it? In fact it makes me laugh when I see sales of houses over £10m increased by 500% - as that means they probably sold 10 of them in a year ! So what? Well per Rightmove - over 1000 properties are on the market for over £1 within just 1/4 miles of W1. I can't be bothered to add up all of London but clearly there are a few year's worth sitting on the market. Indeed there are nearly 1000 properties on the market over £3m within 5 miles of W1. That is about 10 years supply...... Good luck London top end....and keep spinning to the foreigners, VIs, 'cos you ain't gonna be selling any of your overpriced houses to us. Edited for a further thought: In order for supply and demand to equate the 1000 £3m properties need to be worth £1m so a 66% reduction. I'd therefore guess that houses around £1m need to drop by 50% to even out supply and those at 300-500k and below would then fall by about 20-30% Edited April 12, 2011 by bajista Quote Link to comment Share on other sites More sharing options...
E14 Posted April 12, 2011 Share Posted April 12, 2011 To be more precise, i speak about Britannia Village, where the prices are around 220-250k for a 2bed flat. The ones you show are out of my range. I purchased a place in BV last year and am very happy with the purchase. With all the development that is taking shape over the next 5-10 years I have made a very good choice. With no rate rises on the horizon until late summer/autumn its turning out to be a nice gamble. Better than renting thats for sure other Newham areas I think still have a long way to go. No crash in the Royal Docks Quote Link to comment Share on other sites More sharing options...
coenbmw Posted April 12, 2011 Share Posted April 12, 2011 2 beds have been about that price for some time. Ten years ago I lived in Galleons E16 (across the river from you) and that was what they were going for. Met quite a lot of smug BTL types who thought they were on a nice little earner. Prices were depressed due to so much development, then they went crazy and fell back again. Rents have risen quite a lot. So the prices risk to remain depressed for a long time, because you can not look somewhere in the area without to see construction cranes. Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.