London’s resi land values took a massive hit last year

Prices fell 11.5% in 2016: Knight Frank

TRD New York /
Feb.February 17, 2017 10:40 AM

Homes in the Notting Hill district of London, England (Credit: Getty Images)

The value of residential land in London’s prime central districts fell by 11.5 percent last year, the biggest fall in half a decade.

The impact of Brexit and tax increases are driving the fall, Bloomberg reported, citing a report from international real estate brokerage Knight Frank.

Tax hikes caused home values in the priciest districts of the city to drop by an average of 6.7 percent in the 12 months through January, the report said.

It appears that the conditions of 2010, when “savvy investors returned to the market and bought in expectation that pricing was reaching the bottom,” are returning, according to Ian Marris, the joint head of residential development at the brokerage.

In January, Related Companies CEO Jeff Blau said there’s been a drop in prices for London luxury homes, and singled out Brexit as a key reason. “Uncertainty is bad for business, and Brexit has created uncertainty,” he said.

Last year, investors from China and Hong Kong purchased approximately $3.75 billion in the London real estate.

Earlier this week, Alistair Meadows, head of U.K. Capital Markets at JLL, told the Wall Street Journal Chinese investors are taking a “a wait-and-see approach” when it comes to deals in the United States. [Bloomberg]Miriam Hall


Related Articles

arrow_forward_ios
Compass SoCal boss Nick Segal steps down

Compass SoCal boss Nick Segal steps down

Democratic State Sen. James Skoufis (Credit: NY Senate)

Real estate agents facing subpoenas after failing to appear at hearing

From left: 1 West End Avenue, 161 West 13th Street and 66 Ninth Avenue (Credit: StreetEasy and Wikipedia)

Porter House penthouse among NYC’s 5 priciest homes to hit the market last week

15 East 90th Street (Credit: Google Maps)

Lonely townhouse finds a match after years on market

From left: renderings of 1 Propect Park West, 85 Jay Street and 98 Front Street in Brooklyn (Credit: StreetEasy)

The priciest Brooklyn condo filings of 2019

60 East 93rd Street and Carlton Hobbs (Credit: Google Maps and Getty Images)

Why a $68M townhouse listing was abruptly pulled off the market

Zillow President Jeremy Wacksman

Zillow launches its high-stakes home-flipping business in LA

From left: the Ritz-Carlton, 32 East 1st Street, 560 West 24th Street, 301 East 80th Street and 32 West 85th Street

Five priciest homes new to market include 1897 townhouse

arrow_forward_ios
Loading...