How low will property go?

Conrad

You talk of Singapore as if it's a paradise. I've just spent some time there and everyone bemoaned the horrendous cost of living, I'm not surprised if property has fallen in price when the cost of living is so huge. Also a heck of a lot of new build there so maybe property is over supplied. The worlds poor migrants pile into London and despite all the deluded lefty doom n gloom that no one can afford to live there, still the worlds poor come and still they find a homes, most of them on thier own, not sharing with other families. People always find a way to afford London property in the long run

System

p1212 wrote: »

Really guys, you still coming up with these 20th century ideas that people want to live in the cities hence prices going up?

Can you please tell me then why prices are falling in Singapore since 2013 and why are they falling in Vancouver right now?
And why prices went down in London in 2008? Did suddenly a few million people disappear or what?

No. It is because in Singapore they've restricted borrowing against property since 2012-2013 and vancouver started to fight foreign investment money.
Also in London debt had been restricted in 2008, that's why prices started to fall.

It's not natural demand and supply, it is only sepculative money + more and more debt, if you remove these, prices will freefall as in the cities mentioned above.

The world is actually shifting, more and more places will follow the two above.

This guy talks sense!!!

cells

economic wrote: »

probably because as Cells says people are having kids at an older age and fewer kids as well so theres less demand for big houses in suburban areas. people also prefering to live closer to work and nightlife amenties making it so much easier and cheaper to get to from an urban location. also it is much cooler living in zone 1/2/3 london.

Homes have always been a status symbols but more so now than ever.

People wonder why or who is buying the £1-£3 million terrace homes in Hackney. But why do people buy £50-£250k cars when you can buy a perfectly good new ford for £10-15k? Why do people spend £5k on a handbag etc

cells

p1212 wrote: »

Really guys, you still coming up with these 20th century ideas that people want to live in the cities hence prices going up?

Can you please tell me then why prices are falling in Singapore since 2013 and why are they falling in Vancouver right now?
And why prices went down in London in 2008? Did suddenly a few million people disappear or what?

No. It is because in Singapore they've restricted borrowing against property since 2012-2013 and vancouver started to fight foreign investment money.
Also in London debt had been restricted in 2008, that's why prices started to fall.

It's not natural demand and supply, it is only sepculative money + more and more debt, if you remove these, prices will freefall as in the cities mentioned above.

The world is actually shifting, more and more places will follow the two above.

In the short term or artificial events you mentioned can influence prices downwards. That doesn't mean there will be a crash in property prices in the near term.

As another poster here points out there have been 'property prices are about to crash' people for 20 years. Inner London prices are up 10x since then so even if they went down 50% they would still be 5x higher than what the 1995 cohort of crash cheer leaders were doi g their dance

System

High prices are continuing to increase in certain regions but people's real income are falling year on year in all regions.

cells

CLAPTON wrote: »

cell's view on the collapse of houses prices to zero, applies sometime after 21st July 2306

I think it will be a lot sooner than that. By my definition I think Germany is already there. I don't have the time to check but I think the last time I had a look at the annual report of the largest Germany REIT they had something like 300,000 properties on their books with an average value of some 40k euro if i recall correctly. That's about £35k for an apartment which puts it well under new build costs (even with free land) so prices for much of Germany are already 'worthless'.

Each country will reach this at different years but it looks like Germany and Japan are there or close to it. The UK if it cut off all internal migration would probably be there in about 20 years. Actually maybe even sooner as we would have a lot of people still continue to emigrate out of the uk combined with the low birth rate we could go to a negative population growth instantly. Losing half a million people a year while building 150k units a year would result in worthless property in 'no time'

AG47

Crashy_Time wrote: »

Meeowww......:rotfl: Yes, it is amazing the amount of "high net worth" individuals on here who can`t write, read, or even spell properly :rotfl: just goes to show that education is over-rated.

Not high net worth, just highly in debt property 'owners'

cells

mrlegend123 wrote: »

High prices are continuing to increase in certain regions but people's real income are falling year on year in all regions.

Who do you think has a better sample set and more reliable information. A random poster on the internet that calls himself MrLegend 123 or the office for national statistics?

System

Cell - My statements are always based on current facts. I don't make things up like you. Here's the link:

https://homelet.co.uk/homelet-rental-index/infographic

System

I know the link is based on the rental sector but it will still apply to house prices. Mortgage owners and renters will have the same income levels.

https://homelet.co.uk/homelet-rental-index/infographic