Monday, December 1, 2014
Unwind of London super-prime properties dead ahead
Russian money flows into UK have ended - sanctions. China cracking down on corruption and black economy - massively reduces flows into London via tax havens. Gulf money - now in trouble as oil is under break-even and domestic spending needs shoring up to keep populations placid. QE in USA - has ended Bank of England - tightened mortgage rules massively OECD - cracking down on tax-havens All demand fundamentals are impaired. For London super prime to maintain current levels, a new source of capital flight/in-flow is needed. The only thing I can think of is Draghi's come-lately money-printing. But will it be enough? Meanwhile all supply fundamentals are improved - loosening of planning and huge glut of London construction. Is this the end of the London party?