Prices in London finally start to slide, but the reasons are far from clear-cut
Experts suggest Brexit, and a likely devaluation of sterling, could inadvertently make the city’s luxury units more attractive to overseas buyers
The London property market is a complex beast.
After a long run and much talk of a bubble, prices in the city have fallen, but the reason for the slump isn’t clear-cut.
Certainly fears over a possible Brexit have cast a shadow, and Thurday’s referendum will put an end to that uncertainty — but there’s plenty more weighing on the market.
Two new London developments speak volumes about the city’s current market, and the impact of the recent slowdown of Chinese investment in the British capital.
The developer Berkeley doubtless had its eye on the Chinese market when it gave South Quay Plaza in Canary Wharf, a residential development that is set to change the London skyline, a lucky 888 residential properties, including 188 affordable homes.
Designed by Foster + Partners and with excellent transport links — it’s close to City Airport and the Crossrail which will open in 2018 — South Quay has much appeal for Asians.
“Chinese buyers account for 25 per cent of sales so far and most of those were buyers coming in early, they are very comfortable about buying off-plan,” says Berkeley Homes managing director Harry Lewis. Another quarter of the sales have come from the Middle East, with the rest British.