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http://www.rightmove.co.uk/new-homes-for-sale/property-30984741.html

Not quite as many steps... but a quarter off 1.6 million is a lot of money. I wonder how the neighbours who bought at original price are feeling (looking at the building there's 6 other identical flats.

i wonder at what price the developers would be making a loss

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Hello, long time lurker here. I live and grew up in London and, like all of you got fed up of the ridiculous house prices in London (and much of the UK), and found myself on here.  Anyway, enough

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Just the sort of 'bitcoin' that Russian and Chinese thieves like to buy and leave empty. Pehaps they have gone home.. Here in Aus I heard a story about a few of the Chinese buying our new build tower blocks (built in thier 1000's just for them it would seem) for the same purpose, however then believing that paying the massive service fees for such buildings to be optional, based on the fact that they were not living there, thus not wearing the place out. I see problems.. hopefully big problems.

i can see a situation developing whereby we have a massive crash in new builds while actual houses merely correct.

a new build in stratford costs a lot more than a 3 bed period house in the area.

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Willesden on HUTH now. Guy who bought it has all the local knowledge as he is a property solicitor....

Bought at auction end of may 2014. Brilliant timing.

Bought for 291, spending expected 20, going to adda tiny wee second bedroom.

Expert estate agent reckons 400k final value. Let's see.

Auction room full of people - the place is going to be worth 400k when done - the numbers just don't add up. Many others in the room will have the funding and knowledge of prices. Why would they all just stand there and let someone else make all this 'profit' without firing in themselves ?

Its just made up nonsense (most of it anyway)

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i can see a situation developing whereby we have a massive crash in new builds while actual houses merely correct.

a new build in stratford costs a lot more than a 3 bed period house in the area.

Both old and new builds are included in the main indexes. You can't have one crash without the other.

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Both old and new builds are included in the main indexes. You can't have one crash without the other.

for me, a new build flat would have to be incredibly cheap for me to buy over a house.

at the moment new builds in stratford are significantly higher priced than houses in the area.

if they were evenly priced i wouldn't buy one.

if they were half the price of a house i still wouldn't buy one.

if a new build flat was a quarter of the price of a house in the area i would think about it.

so, from a personal perspective and as an east london native new builds would have to actually crash to get my interest.

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for me, a new build flat would have to be incredibly cheap for me to buy over a house.

at the moment new builds in stratford are significantly higher priced than houses in the area.

if they were evenly priced i wouldn't buy one.

if they were half the price of a house i still wouldn't buy one.

if a new build flat was a quarter of the price of a house in the area i would think about it.

so, from a personal perspective and as an east london native new builds would have to actually crash to get my interest.

I totally agree. It's just that when new builds fall in price, period properties will follow. New builds will fall hardest, but period properties will be dragged down too. Let's face it, all property is overpriced because of loose lending in the main.

Edited by Eddie_George
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Clapham. last 3 days:

1/23: 4% :blink:

I wouldn't worry too much about this. It will be to do with the changeover to the new website On The Market. That's going to skew the price falls measuring system on this thread over the next few weeks.

Does OTM record price reductions, by the way?

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for me, a new build flat would have to be incredibly cheap for me to buy over a house.

at the moment new builds in stratford are significantly higher priced than houses in the area.

if they were evenly priced i wouldn't buy one.

if they were half the price of a house i still wouldn't buy one.

if a new build flat was a quarter of the price of a house in the area i would think about it.

so, from a personal perspective and as an east london native new builds would have to actually crash to get my interest.

There in a nutshell is one of the main reasons new builds are screwed. Locals prefer period property if they can get it because it is, mostly, nicer. If new builds were actually nice, this wouldn't be the case, but most have little or no style. We have planning to thank for that. It has removed originality and variety from homebuilding.

New builds also suffer from high service charges which makes them doubly unattractive.

The new build market is completely dependent on foreign buying which may or may not last - and is becoming increasingly unpopular for reasons we all know.

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http://www.rightmove.co.uk/new-homes-for-sale/property-30984741.html

Not quite as many steps... but a quarter off 1.6 million is a lot of money. I wonder how the neighbours who bought at original price are feeling (looking at the building there's 6 other identical flats.

I think that is 201 - never sold.

Here are the two above (identical)

  • Apartment 401, Park Vista Tower, 5 Cobblestone Square, London, Greater London E1W 3AY
    £725,000 Flat, Leasehold (New Build) 26 Mar 2014
  • Apartment 301, Park Vista Tower, 5 Cobblestone Square, London, Greater London E1W 3AY
    £734,400 Flat, Leasehold (New Build) 25 Mar 2014

    So sadly kiteflying and not by any stretch a bargain.

    The people upstairs are still opening the bubbly!

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http://moneyweek.com/merryns-blog/london-house-prices-how-demand-has-created-its-own-supply/

The new supply coming on, they say, is so huge that it is something of a “cuckoo in the nest” of the London housing market. How huge? Their research suggests that 54,000 units are in the pipeline.Last year, under 4,000 properties sold for over £1m in prime London, something that gives you an idea of just how big (or small) the second-hand market is.

http://www.cityam.com/208028/foxtons-share-price-falls-revenues-fall-12-cent

Not a good day for Foxtons shareholders. Shares fell 2.4 per cent in early trading as the upmarket estate agent - known for its trendy Minis and even trendier, bar-like offices - has posted fourth quarter results showing revenues fell 12 per cent in the three months to the end of December. That was driven by a 25.7 per cent fall in sales commission during the quarter - although it added that full-year sales commission rose 3.6 per cent to £70m.

http://www.thisismoney.co.uk/money/markets/article-2928185/Cooling-London-market-forces-Foxtons-profit-warning-lettings-soar.html

Estate agency chain Foxtons issued another profit warning today amid a cooling property market in London

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i wonder why those people queuing for three days to buy a chipboard rat cage in stratford the other day didn't buy this:

http://www.rightmove.co.uk/new-homes-for-sale/property-30695526.html

Price changed: from '£425,000' to '£400,000' today

was originally £440k

6% haircut in 20 days; perhaps 60% haircut in 200 days ??? :lol::lol::lol:

Perhaps a builder with cash flow problems ... ???

Edited by Damik
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http://moneyweek.com/merryns-blog/london-house-prices-how-demand-has-created-its-own-supply/

The new supply coming on, they say, is so huge that it is something of a “cuckoo in the nest” of the London housing market. How huge? Their research suggests that 54,000 units are in the pipeline.Last year, under 4,000 properties sold for over £1m in prime London, something that gives you an idea of just how big (or small) the second-hand market is.

This is what I was trying to refer to a few days ago.

Actually I think it was a post by Free Trader which alerted me to just how much newbuild/offplan supply developers will try and flog into forever HPI 'the money never runs out'.

Article I read yesterday suggested at least one developer got financing to buy expensive plot of land in London from bridging loan/speciality finance, as they then sell offplan. http://bridgingloandirectory.co.uk/2014/08/05/omni-capital-funds-chelsea-island-acquisition/

Seems like reflated boom malinvestment to me, if trying to realise these kind of prices - but maybe they do manage to flog them to enough people still in love with HPI who have enough money or the and borrow to pay such prices. Then again battles that I thought were won, have not been; excuses and reflation forever.

There was an article, sometime early 2014, wondering what the market would be like, and looking at risks for developers, as a lot of newbuild London property set to come to market 2015. Sunday Times, Money section, quite packed with it.

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This is what I was trying to refer to a few days ago.

Actually I think it was a post by Free Trader which alerted me to just how much newbuild/offplan supply developers will try and flog into forever HPI 'the money never runs out'.

Article I read yesterday suggested at least one developer got financing to buy expensive plot of land in London from bridging loan/speciality finance, as they then sell offplan. http://bridgingloandirectory.co.uk/2014/08/05/omni-capital-funds-chelsea-island-acquisition/

This is good news. Builders can not afford to do not sell quickly as their banks would wihtdraw financing. I am sure we will see aggressive new build price reductions this quorter ...

Edited by Damik
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What happened in Leeds?

Leeds specifically:

2002: sales: 15394, avg price: 98549

2003: sales: 15166, avg price: 120109

2004: sales: 14897, avg price: 140511

2005: sales: 12445, avg price: 149729

Ten years on:

2012: sales: 6580, avg price: 165286

2013: sales: 8413, avg price: 167023

2014: sales: 8414, avg price: 171242

RPI inflation reduces the 2014 real value by 26%, so £126K in 2004 money.

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