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Impact of Capital Markets on the house prices
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JoeSatch
Posted: 9 years ago
#1

Joined: 11/03/2015(UTC)
Posts: 6
Hi,

What are your thoughts on the impact of recent capital market slide on the housing market in London + other part of the country.

With the markets going in a tailspin mainly because of China's slump, would you think that the ripple effect might come into property market esp when it is a sellers market at the moment and London is perceived to be in a bubble.

Other than the fact that wealthy Asian investors may be selling/holding on buying for sometime, the sentiment of panic/another big crash et al might cause a lot of people to withdraw their current buy offers/hold their purchase for few months resulting in reversing the current trend and bring the prices down.

Any thoughts? Am just an amateur looking for inputs here.

Thanks

J
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Aidan Williams
Posted: 9 years ago
#2

Joined: 17/02/2013(UTC)
Posts: 16

Thanks: 41 times
Was thanked: 7 time(s) in 7 post(s)
Hi Joe,

If anything, I think it could actually force property prices up, especially in London. Interest rate rises now seem even further off, bond yields are even lower and gold has hardly reacted at all this week.

However, for me personally it has made me think twice. I was going to increase my equity in my shared ownership home. RICS valuation came in at +20% from only 9 months ago. The alleged cooling of the London housing market is as localised as the cold spots I used to get in my first microwave oven. So I will be topping up my emerging market trackers instead of chasing this year's winner....

London is certainly unaffordable. But then it probably always will be.
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1 user thanked Aidan Williams for this post.
JoeSatch on 28/08/2015(UTC)
Sam Norris
Posted: 9 years ago
#3

Joined: 09/09/2015(UTC)
Posts: 2
Hi guys,

Mark Carney actually came out and stated that the China crisis wouldnt be having an effect on the Bank of England's plans to role out rate rises next year only this week. It seems the turmoil has not had as wider effect on the property/mortgage market as was first thought.

The property market in London is one of, if not the strongest property market in the world. It will always be strong for a few reasons, including London being the financial capital and the lack of ability to vastly increase the number of properties because of planning restrictions both up and out. I only see the property market getting stronger in London for the foreseeable future.

Sam
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Alan Selwood
Posted: 9 years ago
#4

Joined: 17/12/2011(UTC)
Posts: 3,379
A lot of foreign buyers have bought, so I have read, to place capital out of risky political areas. So I suspect that the biggest threat is not a China slow-down, but Corbyn!

As for statements by people like Carney or Yellen, could it be that they are trying to make others believe something that may not be true, for their own reasons? I certainly shudder and start to panic whenever a politician says that everything is going brilliantly.......!!
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