High-end, new-build flats in London.

Bubble_and_Squeak

tkane wrote: »

There was a statistic floating about a few months ago saying that 60million Chinese people had enough savings to fund a buy to let property abroad. That is equivalent to every man, child and woman living in the UK right now.

When you think about London being at the forefront of property investment, you can easily see where all this 'demand' is coming from.

china started to enforce capital controls a few months back.
i believe $50,000 a year is the maximum an individual can take out of china.

Bubble_and_Squeak

holding empty properties is fine in a rising market but what if the wind changes?
some figures released in december (can't remember who by) showed new build prices to be falling for the first time in ages.
could be a blip but less foreign money coming in and reduced domestic demand suggest otherwise.

Bubble_and_Squeak

happylucky wrote: »

...or that they need to secure cash flow now in order to progress with construction...

that is an interested point.
i wonder what would happen if the flow of foreign money financing this rubbish dries up mid way through a development.
well, it has, but EU QE should fix that.

edinburgher

There was a statistic floating about a few months ago saying that 60million Chinese people had enough savings to fund a buy to let property abroad. That is equivalent to every man, child and woman living in the UK right now.

I could believe that, aren't Chinese savings rates something like 30% on average?

Killerseven

Bubble_and_Squeak wrote: »

china started to enforce capital controls a few months back.
i believe $50,000 a year is the maximum an individual can take out of china.

How can any chinese person buy a place in London

hardnutman

lisyloo wrote: »

Have you considered that some of these might be owned by absent foreign owners who didn't buy them to live in but for an investment.

Exactly. And it has worked when you consider what would have happened to the Russian oligarchs had they kept their wealth in Rubles :rotfl:

tkane

Killerseven wrote: »

When you think about London being at the forefront of property bubble, you can easily see where all this 'demand' will want out when it starts to pop.

Corrected for me? This is not HPC.

Come up with your own sentences

lisyloo

In London it's not that simple.
For example you have to consider currency exchange rates, foreign tax regimes and safety of investments a roads. If it compares well over here then money will pour in - yes even if prices are falling.
There is also demand from plenty of people who want to buy long term and will get in when it's affordable as they have massive confidence in London housing long term and hey guess what really want to live here - yes they will buy even if prices are falling.
I would love a big crash but I really can't see prices for most of us falling a lot.
I also don't think anyone knows either.

padington

If there is a big crash in London, it will probably mean something really bad has happened and lots of people will be struggling because of that. Wishing for a big crash is like wishing for unemployment so you can snap up cheap workers.

London has been going bonkers for years, such rises have their advantages as it pulls huge ammounts of money into our economy but in extremes can also put off businesses and even young bright minds from joining the party so a few years of things going sideways will be good for London. It also means that people can move houses finally in a more leisurely way.

The new sideways dynamic should be welcomed. The time will come again for another uplift but for now this is a nice opportunity to move not under duress and have time to consider options with some calm. Also it helps ensure that London maintains it's magnetic charm which ultimately is what builds the foundations for long term prosperity for all of her inhabitants and subsequently ultimately increase house prices.

No popping, no dangerous bubbles, just a great city pausing before making it's next move.

lisyloo

i agree that a crash needs something bad like mass unemployment or major terrorist attack in London.
A correction may happen due to nervousness around the election.

Interesting that you talk about moving. Lots of people appear to be priced out of taking the next step in places like walthamstowe (check out the house buying board). I'm not sure a pause is enough to make things affordable unless by sideways you mean down in real terms - even then it would take some time to get from where we are now which is v expensive by ordinary standards.