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Are Top End Properties Skewing The Figures?

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A friend of mine is about to sell her flat in London for 800K.

It was bought for 450K 4 years ago. :blink:

But get this - Foxtons (uber-lords of over-valuing) priced it at a mere 650K!

Someone heard she was selling before she put it on the market and offered 700K. My friend decided to be cheeky and turned it down, eventually agreeing on 800K.

It got me thinking:

a. Some people are either incredibly rich or have just become de-sensitized to the amount of money they are actually spending/borrowing and it'll all end in tears (I favour the latter)

b. Is there a 2-tier market, the upper level of which may in some way be 'immune' to crashing?

c. Are such absurd top-end sales combined with relatively low volumes distorting the HPI figures?

Your thoughts, please!

Edited by red

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The top end has been skewing the figures in the Bellweather US market--San Diego, California. The VIs admit it there though and accept the market is down overall. This may be why the RICs report yesterday claims that prices are not going up and that recent Haliwide/Rightmove reports are unreliable.

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Naa. I think no matter what tier of property you are in (superrich excepted) you are likely to find that what you think you should get for your hard earned money, and what you actually get are poles apart. I don't think that people who have 800k to spend on a property are any less aware of the total lack of value that you get from the current market that those who have say 200k. Its all just completely insane. I don't think there are any winners in terms of certain tiers of the market being crash protected. And lets face it, at all tiers of the market there are always lunatics who will vastly overpay for a property and that is up to them.

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My thoughts:

F**K ME. £800k for a FLAT!!!!!!!!!!

That would buy you a pretty amazing house in parts of London.

I guess this is in one of the most desirable parts of London....somehwere with history too and therefore may have a niche appeal to some superrich Arab.

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  • 302 Brexit, House prices and Summer 2020

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