News
Market Comment
February 6, 2009
Against a background of turbulent world economic conditions,according to Nationwide prices are 18% down from peak values.I believe if you really needed to sell stock in new build central London schemes during the latter half of 2008,you probably need to add another 12% onto that drop.In conjuction with this fall,the rental market has also suffered due to increasing stock levels which is contradictory to what normally happens in these circumstances.
However the worst of the price falls could soon be over and whilst they may still continue for a period,the rate of fall should slow.Market evidence is suggesting that interest from cash and international (dollar or euro based) based buyers are active and in some cases supply is restricted.
We would expect the central London new build market to lag behind more traditional housing stock in centrally located areas (Mayfair/Kensington) but with new build starts at a historic lows supply will begin to dry up.
A low interest rate environment will naturally be paramount to any recovery.