Tuesday, Feb 10, 2015

UK's property boom based on ZIRP, QE and disaster elsewhere

Property Wire: Central London property prices still falling, latest index shows

It's much nicer for people to believe it's based on something endogenous to the UK economy - quietly forgetting that 20 years ago, you couldn't *give* London property away.
Now oil has fallen, China is cracking down on corruption, Russia is sanctioned (will worsen), private banks are under investigation for tax-evasion and money-laundering and what eurozone money wanted to flee largely has, from where will the next influx of foreign capital come? I can't name one just yet. So, why should we price London like its land-locked (Monaco, Manhattan, Hong Kong, Singapore)?
"The index shows that in January 2015, landlords with a property in Walworth recorded a negative real % yield of 11.3%, while in Belgravia the negative real % yield stood at 7.1%.

Posted by sneaker @ 04:06 PM (4126 views)
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5 Comments

1. khards said...

What are the stats for Enfield-upon-shithole looking like?

Tuesday, February 10, 2015 05:51PM Report Comment
 

2. britishblue said...

China executed one of their multi billionaires. as CNBC reported yesterday, 'The Chinese government is going after billionaires for their money, their assets and now, their lives'. I guess he would have had a dozen more London flats last year if he hadn't been arrested.

Tuesday, February 10, 2015 07:16PM Report Comment
 

3. icarus said...

Someone who monitors certain parts of the London market closely (especially Highgate/N6, but also St Johns Wood and Maida Vale) says prices have been falling for 6 months or more. Some in N6 have come down from around £1.3m to around £900k and are not yet sold.

Tuesday, February 10, 2015 10:29PM Report Comment
 

4. sneaker said...

@icarus re. "Some in N6 have come down from around £1.3m to around £900k and are not yet sold."

Come on, do - are those bedsits or studios? The agony is killing us!

Tuesday, February 10, 2015 10:48PM Report Comment
 

5. icarus said...

sneaker ?? Not all N6 properties are in Compton Avenue.

Tuesday, February 10, 2015 11:08PM Report Comment
 

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