Monday, August 15, 2011

Rightmove: -2.1%MoM, -0.3%YoY

London House Prices Plunge Most in a Year as Market Rout Hits Confidence

National asking prices were down 2.1% on the month, and down 0.3% from a year ago. In London, prices fell 3.4% on the month, but were up 3.2% from last year. Rightmove said "In London, prices probably won’t continue to fall at the same rate as in August as the market is seen internationally as a safe haven in times of financial upheaval.”

Posted by little professor @ 06:52 AM (2495 views)
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7 thoughts on “Rightmove: -2.1%MoM, -0.3%YoY

  • Now these are the kinds of numbers that I would prefer to see.

    In London, prices fell 3.4% on the month

    That’s very impressive…I think this may accelerate as we move into the latter part of the year.

    Fingers crossed that the ‘actuals’ are just as bad.

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  • little professor says:

    Alternatively, though, this from the FT today suggests the speculators are piling back in to prime London real estate:

    Investors snap up real estate
    Investors fleeing the volatile bond markets are pushing the prices of “trophy” real estate assets so high that yields are barely keeping up with inflation in some developed economies.
    Prices for elite properties in the US, UK, Germany, France and Japan have surged as investment flows in the first half of 2011 approach those seen near the 2007 peak, according to Partners. That has pushed yields as low as 3-4 per cent, barely keeping ahead of inflation in some developed countries.
    “Many institutional investors have been tactically shifting some of their fixed income allocations to real estate,” said Stephan Schäli, head of private equity at Partners. “Over the last year, [investors] have been looking for safety and yield and trophy assets were perceived as offering that, but yields have been so low that inflation leaves them on risky footing.”

    Luba Nikulina, global head of private markets at Towers Watson, a consultancy, said: “The megacities are overheated. We are seeing quite a lot of demand for trophy properties, so people need to move to secondary-type assets.”
    “If everyone piles in at the same time this will lead to a speculative bubble. There isn’t enough of this stuff globally in countries with stable political systems, where you have the confidence that you can invest and then later get your money out.”

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  • notyethomeless says:

    “London property is seen as a safe haven…”

    Unless it’s on fire, that is. Wonder if any of the global billionaire bunch will think twice, post riots?

    Lol, what if the rioters had the unintended effect of making British society more equal! Should we HPC’ers go thank them?

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  • sibley's b'stard child says:

    I’ll beat MW to it.

    RM is looking increasingly reliable of late.

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  • the big problem as i see it is big money people are allowed free use of britain as if it were a tax haven for them, in turn they buy up stuff and leave it empty, i remember reading somewhere the rates on some of these “mansions” in london were less than a grotty apartment in manchester

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  • mark wadsworth says:

    Damn, the ever reliable SBC beat me to it.

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  • Isn’t there 2 distinct markets in London. There is the very high value but relatively low volume prime market and the market that the rest of us operate in. Could this be the point where the decline in the “normal” market is beginning to swamp the rising prime investment market?

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