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Crossrail Vs Hpc: How Much Does Infrastucture Development Affect House Price Fluctuation During A Correction/crash?

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Not sure where to post this:

Crossrail is one of the biggest public infrastructure projects in Europe; billions ploughed into a congested region where taking the central line is like a deleted scene from World War Z and where cattle people squeeze into every last remaining crevice of a central line/Shenfield-Liv St Train as if they were taking part in the Hunger Games.

It will link the 2 branches of Shenfield and Abbey wood via Whitechapel + Liverpool St station to the Paddington-Reading section of National Rail.

In the outer Areas of the current Liverpool to Shenfield line you have towns like Goodmayes, Seven Kings etc, which are within the M25 but prices are still significantly lower with a 3 bed around 270-320k - Expensive I know, but not when compared to the terribly inflated prices found in say Walthamstow and Croydon where 2 bed and 1 bed flats regularly go for above 300k.

Question:

As a House Price Crash Correction draws closer how much does such infrastructure negate any price drops? Does it even affect anything at all when the impending avalanche of panic descends on us all.

I think with regards to this project any gains in crossrail prices will indeed be knocked back by the impending correction in the market but I'd like to hear from those of you that are wiser.

Over to you, you crazy prophetic bearded sages.

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That depends. Benefits of infrastructure are indeed capitalised in land values, and London/SE has the greatest concentration of agglomeration economies. It's also the centre of productive surplus captured by landowners, so the relative effect of a house price crash/correction will depend on the run-up and why it happens.

If London has experienced the greatest speculative mania then it may also fall the hardest. If surrounding crossrail-dependant areas have been bid up in freeriding speculation beyond genuine agglomeration effects, productivity gains and demand that would be expected of any large growing urban region, they may too. Time will tell.

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......a home is made up of four walls.....it only has a value of what infrastructure, work and people around it......many have gained financially from previous generations hard work, quality well made housing, excellent paying jobs, transport, roads, hospitals, schools and young, innovative and prosperous businesses......problem being when travelling becomes a grind, the jobs no longer pay, the living accommodation becomes cramped and expensive, the quality of schools declining the hospitals can't cope.......who then will be prepared to pay such a high price to live there? ;)

Edited by winkie

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Over to you, you crazy prophetic bearded sages.

Who told you about my beard?

If that area is cheaper than equivalent areas with the same transport, amenities and other advantages, then the price will rise relative to those other areas, once the improvements have been completed.

Any general underlying price movements will (e.g. crash) will probably be the same for all areas.

(i.e., if you think the area is equivalent to Croydon, then prices should move towards Croydon prices. It will still be equivalent to Croydon after any crash)

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