Wednesday, August 19, 2015

What goes up…

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 (6239 views)
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15 thoughts on “What goes up…

  • 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!

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  • Not just the strong pound…

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  • 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?

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  • 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.

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

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  • 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.

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  • 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.

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  • @ 6

    “And thus, others will also invest into Sterling’s strength…”

    Evidence?

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  • 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?

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  • (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.)

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  • 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.

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  • 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.

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  • 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.

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

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  • @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.

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