"Thousands" of London flats to come to the market

Graham_Devon

cells wrote: »

what a lot of people are telling you is that they dont care if a rich Russian who paid £5m for a flat sells it for £3m and that even at £3m it is still an expensive property

You and wotsthat?

Yes, it's still an expensive property. But I think that rather misses the point. A superb way to mask over the fact it's lost around 40% of it's value though..... "well it's still expensive... everything is awesome".

wotsthat

Graham_Devon wrote: »

Yes, it's still an expensive property. But I think that rather misses the point. A superb way to mask over the fact it's lost around 40% of it's value though..... "well it's still expensive... everything is awesome".

No one cares if it loses 40% of it's value because it only impacts a rich foreigner who threw a load of cash into the UK economy and failed to take it back out.

It's why I questioned just what was being sold to rich foreigners because, even in London, the number of new build multi-million pound places is tiny. Most isn't priced that far above normal (for London) prices and therefore not really marketed at the world's mega-rich so price falls might be (slightly) more interesting.

And, of course, it's yet to pass. The 'is prime London crashing' thread on HPC has had daily 'evidence' of a crash in this market for two years and, as far as I can see, prices are still just as mental.

cells

Graham_Devon wrote: »

You and wotsthat?

Yes, it's still an expensive property. But I think that rather misses the point. A superb way to mask over the fact it's lost around 40% of it's value though..... "well it's still expensive... everything is awesome".

I don't think a £5m property is going to crash to £3m, I think its more likely to become a £10m property in twenty years time

I was just pointing out that, even if I am wrong and you are right, the £3m property is still more than you or I could afford and its not going to imapct the price of the more normal stock in London valued at £0.4million to £1 million

martinsurrey

Graham_Devon wrote: »

The type of properties that foreign investors target are not usually placed on rightmove. What's more, it's often not one single apartment they buy.

Hounding me over every single thing is becoming tiresome, surely?

and again, source for that, I know developers that sell to foreign investors and they are very much on rightmove and very much single property purchases.

dont confuse the few wild stories in the press with the workings of the vast majority of the market. For every £40m Russian billionaire penthouse, there are 100's of mum and dad upperclass Chinese Clapham purchases .

in fact I know a large developer who has sold a mere handful of properties not through the normal channels, and again these were the top 1% of the top 1%

happylucky

http://www.cluttons.com/sites/default/files/documents/london-residential-market-outlook-winter-2015-2016.pdf

I assume this is the report that triggered the guardian article in original post. It's well worth a read for anyone interested in London property and really highlights that no meaningful generalisations can be made about a UK housing market, and that it's indeed very difficult to generalise about a London market!

The Cluttons residential outlooks for London are normally pretty sound IMHO, and more factual than other agents active in central London (bit biased as I used them for years).

At the same time, enough unforeseeable wild cards have impacted the market over the past years (positive and negative) to suggest that more could still come out...

purch

Graham_Devon wrote: »

the fact it's lost around 40% of it's value though.

Dev, it hasn't lost 40% of it's VALUE

Value isn't the price some knob paid for something, nor the price the same knob sold it.

The VALUE of it has stayed the same.

Crashy_Time

wotsthat wrote: »

No one cares if it loses 40% of it's value because it only impacts a rich foreigner who threw a load of cash into the UK economy and failed to take it back out.

It's why I questioned just what was being sold to rich foreigners because, even in London, the number of new build multi-million pound places is tiny. Most isn't priced that far above normal (for London) prices and therefore not really marketed at the world's mega-rich so price falls might be (slightly) more interesting.

And, of course, it's yet to pass. The 'is prime London crashing' thread on HPC has had daily 'evidence' of a crash in this market for two years and, as far as I can see, prices are still just as mental.

If anything starts losing 40% of it`s "value" in London there will be panic all the way down the food chain.

Crashy_Time

cells wrote: »

I don't think a £5m property is going to crash to £3m, I think its more likely to become a £10m property in twenty years time

I was just pointing out that, even if I am wrong and you are right, the £3m property is still more than you or I could afford and its not going to imapct the price of the more normal stock in London valued at £0.4million to £1 million

Or forty...or fifty.....:rotfl: If the stuff at the top starts crashing it is because the world economy has nose dived again, and rich peeps are seeing their money evaporate as stocks plunge and hedge funds blow up? In that case the credit won`t be available to allow the chains to move that let John and Jemima, the muppets in the middle, sell one overrated terrace to buy a better one somewhere else.

wotsthat

Crashy_Time wrote: »

If anything starts losing 40% of it`s "value" in London there will be panic all the way down the food chain.

Speculating on what the outcome would be if another speculation comes to pass is a guess mainly based on what you'd like to happen.

Crashy_Time

wotsthat wrote: »

Speculating on what the outcome would be if another speculation comes to pass is a guess mainly based on what you'd like to happen.

Something you never do of course