Top end housing markets
Posted by jdavis on February 19, 2015
That is not our headline. That is the headline given in the article of Introducer Today (the self-proclaimed 'voice of the [independent mortgage] industry').
What does it say?
“It’s clear that prime central London has been devastated where the property market is concerned. For a while now certain areas have seemed impervious to changes in the property market elsewhere in the country. However it is apparent that this is no longer the case as the capital has been brought to its knees.”
This is very strong language.
Then you have this article from the New York Times A High-End Property Collapse in Singapore.
It includes hard facts:
"The few recent sales paint a grim picture. Most sellers have taken sizable losses.
At one apartment building called the Turquoise, a unit sold last July for 4 million Singapore Dollars. The seller bought the apartment in November 2007 for 7 million Singapore Dollars, according to government data compiled by Maybank Kim Eng Securities."
Finally, on this the ONS published its latest house price index this week. It takes data up to December 2014.
It shows that prices fell 2.3% in London since the peak in August 2014, which means the downturn in Central London has developed into a slowdown for London generally.
The media says it is about the May General Election. We see it as more indicative of a global economic slowdown and particularly in China and Russia. It will be interesting to see if this develops.