Wednesday, Aug 19, 2015

What goes up...

Independent: Asian investors start to desert London property market due to strong pound

the legions of foreign investors credited - and blamed in equal measure - for driving the decade-long luxury property boom may finally be getting cold feet.

Posted by debtserf @ 08:58 AM (6158 views)
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15 Comments

1. taffee said...

Didn't sound like it was just the strong pound to me!..like all speculative bubbles of this
Proportion when it burst its gonna be spectacular leaving empty new builds and people scratching their
Heads as to where all the demand went

That's without rates rising!

Wednesday, August 19, 2015 09:18AM Report Comment
 

2. hpwatcher said...

Not just the strong pound...

Wednesday, August 19, 2015 09:40AM Report Comment
 

3. cyril said...

Oh no not another failed attempt at redeveloping Battersea Power station. The curse of Gilbert Scott strikes again - did you know he designed the red telephone box?

Wednesday, August 19, 2015 10:15AM Report Comment
 

4. reticent said...

2014 it was the Russians
2015 it's the asians

You would have thought the oil price crash would have hit the middle Eastern oligarchs. Who is buying then? Panicked southern Europeans? Surely that trend ended years ago...

I note the EAs only talk about how much the nationals make up of the total, rather than the how much the total has itself fallen.

There's no way they can sell all those flats at the prices they're asking.

Wednesday, August 19, 2015 12:06PM Report Comment
 

5. enuii said...

All part of the financial rinse and repeat laundry cycle that is London.

Wednesday, August 19, 2015 05:13PM Report Comment
 

6. libertas said...

Nonsense, investors tend to invest into strength.

Asian investors will be deserting because of weakness at home, i.e. they don't have cash to invest. Nothing to do with the UK situation at all. And thus, others will also invest into Sterling's strength. People tend to sell when prices are falling.

Wednesday, August 19, 2015 05:22PM Report Comment
 

7. libertas said...

The new buyers are panicked Italians. But also panicked Brits wanting to be on the housing ladder.

We have a way to go yet until we get panicked French and Germans. Long way to scraping the barrel.

Wednesday, August 19, 2015 05:23PM Report Comment
 

8. mister ed said...

@ 6

"And thus, others will also invest into Sterling's strength..."

Evidence?

Wednesday, August 19, 2015 07:01PM Report Comment
 

9. reticent said...

Libby, if you've actually read something about where the demand for London property is coming from in the wake of recent international economic shifts, why don't you post then in the blog instead of the usual nonsense about inflation and interest rates?

Wednesday, August 19, 2015 07:13PM Report Comment
 

10. reticent said...

(Unless you just pulled that stuff about Italians and Brits picking up the slack left by the Russians and Chinese in the PCL market out of your a$, of course.)

Wednesday, August 19, 2015 07:17PM Report Comment
 

11. khards said...

I tend to think the slowdown in London property is driven by the price/rent ratio of ZIRP being maxed out.

ZIRP has been priced in. In 'general' prices won't and can't go up further without increasing rents or lowering interest rates.

Wednesday, August 19, 2015 07:29PM Report Comment
 

12. hpwatcher said...

Nonsense, investors tend to invest into strength. Asian investors will be deserting because of weakness at home,

Asian investors won't be investing in anything...due to the massive losses they will need to cover. Most invest on leverage. It's more likely that they will need to quickly liquidate substantial amounts of London/UK property, to cover losses made at home.

People tend to sell when prices are falling.

Not necessarily. They will sell when they *have to*, regardless of what the UK property market is doing. Just look at what is going on in China; essentially, it's their first western style financial crisis.

The new buyers are panicked Italians. But also panicked Brits wanting to be on the housing ladder. We have a way to go yet until we get panicked French and Germans. Long way to scraping the barrel.

This made me laugh. It's silly to assume that the rest of the world has the interest in UK property they the UK does. I have a number of Italian friends, they are telling me that parts of Italy offer far better value for money, than an ''overpriced hole'' like London.

Wednesday, August 19, 2015 07:35PM Report Comment
 

13. hpwatcher said...

ZIRP has been priced in. In 'general' prices won't and can't go up further without increasing rents or lowering interest rates.

Good point. I think they call it ''peak debt''. To keep this pathetic game going, the daft CB's will need to offer large cash incentives to borrowers.

Wednesday, August 19, 2015 07:37PM Report Comment
 

14. hpwatcher said...

Oh, and one other thing. Brace yourselves, October is coming.

Wednesday, August 19, 2015 07:40PM Report Comment
 

15. mister ed said...

@10

"Unless you just pulled that stuff about Italians and Brits picking up the slack left by the Russians and Chinese in the PCL market out of your a$, of course."

A distinct possibility.

Wednesday, August 19, 2015 07:41PM Report Comment
 

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