London property panic station...

[AtW]

well Malaysians bought them for £400m and now can't sell, so who cares?
=)

You.

Malaysians might have been mugs to buy into this on top of the market, but their experience will deter a lot of others and will inevitably drag a lot of prices down, not just at "top end" of the market.

Gidiots extra taxes plus 3% stamp duty plus removal of BTL reliefs should be enough to crash the market nicely.

[WTFH]

£4mill to live in part of a PF album cover?

I'd not pay more than £3.99
...and pigs might fly.

[jamesbrown]

Meh. This was always going to happen. When you massively increase supply to a relatively narrow (overseas-focused) market and prices are already in bubble territory, only one thing can happen, and it is happening. That being said, as much as I'd like it to spillover into the wider market, I don't see this happening, not even the wider market local to these developments. Luxury apartments are something of a niche market. There may be some spillover to 3-bed terraces in the vicinity, but not a lot, I predict (and not until it becomes carnage). Young families simply don't want to live in these apartments (obviously, it reaches a point where it does make sense, financially, but that's a long way off). Let's not be under any illusions though, London is going to crash hard at some point because the fundamentals (earnings multiples, rental yields etc.) are subject to mean reversion. However, it has already been going on for a long time, and it could take much longer still because the current environment is stacked against this (immigration, ZIRP/NIRP, reach for yield etc.).

[AtW]

Young families simply don't want to live in these apartments (obviously, it reaches a point where it does make sense, financially, but that's a long way off).

If you've got 4-6 mln GBP to spend on housing then there are plenty of much nicer places in UK for a "young family" to be for same money or like a LOT less.

[jamesbrown]

If you've got 4-6 mln GBP to spend on housing then there are plenty of much nicer places in UK for a "young family" to be for same money or like a LOT less.

If you've got 4-6m, you've also got a helicopter ferrying you into London. For the average punter with a young family, avoiding a 1-2h commute is worth a lot, hence the demand in London vs., say, scumsville (B'ham).

[AtW]

If you've got 4-6m, you've also got a helicopter ferrying you into London. For the average punter with a young family, avoiding a 1-2h commute is worth a lot, hence the demand in London vs., say, scumsville (B'ham).

If you've got 4-6 mln you don't need to commute anywhere...

[jamesbrown]

If you've got 4-6 mln you don't need to commute anywhere...

4-6m is the new 1m. Aren't something like 10% of households asset millionaires now (inc. property, pensions etc.)?

[AtW]

4-6m is the new 1m. Aren't something like 10% of households asset millionaires now (inc. property, pensions etc.)?

Indeed

[BrilloPad]

You.

Malaysians might have been mugs to buy into this on top of the market, but their experience will deter a lot of others and will inevitably drag a lot of prices down, not just at "top end" of the market.

Gidiots extra taxes plus 3% stamp duty plus removal of BTL reliefs should be enough to crash the market nicely.

Young people can live somewhere.

What is not to like?

[diseasex]

You.

Malaysians might have been mugs to buy into this on top of the market, but their experience will deter a lot of others and will inevitably drag a lot of prices down, not just at "top end" of the market.

Gidiots extra taxes plus 3% stamp duty plus removal of BTL reliefs should be enough to crash the market nicely.

I don't own a property in London and just waiting for prices to drop . So yeah I'll benefit from bubble crash