Thursday, December 15, 2011

But I thought London was immune..?

London's $9 billion property sell-off risks price drops

Lukewarm demand for about 5.75 billion pounds of London offices on the market will likely force sellers to cut prices up to 15 percent, bringing them back to more realistic levels, property experts told Reuters. So far, offers are believed to have been made for about 1.7 billion pounds of the offices, which are in London's City financial zone and Canary Wharf business hub, global real estate consultancy CBRE said. It is not clear how many are under offer. "Realistic pricing remains the key if the 'under offer' is to become a 'sold'," CBRE executive director Mike Edwards said, noting the dearth of big deals in the last quarter of 2011..."

Posted by mark wadsworth @ 04:54 PM (4661 views)
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5 thoughts on “But I thought London was immune..?

  • This is commercial real estate though which is a different kettle of fish altogether. You have to pay for local services through Business Rates and as such it’s not very attractive as a money laundering vehicle/very large, good looking safety deposit box to hide your loot from your IMF controlled Club Med economy 🙂
    (MW, think you might be commenting on the wrong article?)

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  • Sell off and buy what is the question?

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  • What is this place called London? Is it part of the UK?

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  • As mombers said, this is commercial property. Apart from the different tax treatment, there’s also no political pressure to rescue commercial property. There are very few sob stories in the Daily Mail about hard-working office landlords.

    Contrast that with the immense pressure for the government to always be seen doing something about residential property – e.g. the article three stories below this one.

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  • @drewster

    I think you’ll find the government has taken great interest. A lot of the QE was to provide the readies to stop ‘firesales’ of commercial property to our banks. HBOS and RBS have huge portfolios that they’ve been sitting on zombie like. NAMA too of course and many financial corporations will be wanting to sell down their holdings in order to avoid capital raising in the face of tighter capital rules.

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