More flats in London = lower prices?
Discussion
If you mean all of the developments and Vauxhall/Nine Elms, I doubt that there will be much effect at all because they are so removed from what might be considered the 'real' market.
The normal laws of supply and demand would dictate that building thousands more flats would have a downward impact on prices, but if whole blocks are still being sold to foreign investors to sit on, then that impact will be much more limited.
The normal laws of supply and demand would dictate that building thousands more flats would have a downward impact on prices, but if whole blocks are still being sold to foreign investors to sit on, then that impact will be much more limited.
OpulentBob said:
Prices are only going one way. I've been keeping an eye on some new flats going up next to Vicky Park in Hackney (cough Tower Hamlets); the money is far stronger than when I was looking for similar a couple of years ago. £700k for a 2 (small) bedroom, 1 bath studio flat...
£700k for a 2 bed flat? 
who can afford that and what the hell do they do for a living? Short term- Up as there is still not enough supply for the amount of people who want to live in the city.
Further than that, depends on too many factors to predict in my view.
For example how long will foreign investors keep pumping money into buying them off plan- with the drop in sterling you would think a while yet. Also will Londons population growth continue at pre-brexit levels, post Brexit.
Further than that, depends on too many factors to predict in my view.
For example how long will foreign investors keep pumping money into buying them off plan- with the drop in sterling you would think a while yet. Also will Londons population growth continue at pre-brexit levels, post Brexit.
BoRED S2upid said:
£700k for a 2 bed flat? who can afford that and what the hell do they do for a living?
A couple with a joint income of £200k and a healthy deposit could do if they wanted to, but most of these flats are hoovered up by investors who will rent them out for a comically low yield safe in the knowledge that their £700k investment will turn into £900k within a couple of years. who can afford that and what the hell do they do for a living? The question is: will/can that keep on happening ad infinitum?
Long running thread on house prices/ broader topic here:
http://www.pistonheads.com/gassing/topic.asp?h=0&a...
http://www.pistonheads.com/gassing/topic.asp?h=0&a...
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