London no longer calling: home prices fall post-Brexit

Miami /
Mar.March 02, 2017 11:15 AM

From the New York website: London home prices are falling in the wake of Britain’s vote to leave the European Union and a new tax on property sales.

The share of sellers who slashed asking priced rose in 31 of the city’s 33 boroughs between July and January, according to data by listings site Zoopla. In the luxury enclave of Kensington and Chelsea, the average price cut in January was 8.2 percent.

“Over the past two years some agents have been overvaluing to win business from sellers, but given the state of the market post-Brexit, buyers are now very astute and won’t over pay, and reductions are taking place,” Capital Estate Agents Joe Mourat told Bloomberg. “The British public are responsive to negative news, and we definitely saw a downturn in activity after the vote.”

Speaking at the Knight Frank wealth conference on Thursday, Liam Bailey, head of residential research at the brokerage, said London prices are down 6 percent.

London’s residential real estate market has long competed with New York for wealthy overseas investors. Uncertainty over Britain’s political future appears to have cooled demand for luxury apartments in its capital, but New York is dealing with its own uncertainty in the wake of Donald Trump’s Muslim travel ban.

In its March issue, The Real Deal broke down how anti-immigration policies are threatening New York real estate’s status as a safe haven for foreign capital.  [Bloomberg]Konrad Putzier


Related Articles

arrow_forward_ios
Miami skyline
South Florida home sales keep falling as price growth slows
South Florida home sales keep falling as price growth slows
(Illustration by The Real Deal with Getty)
“It’s not dead, it’s just different.” South Florida resi slowdown persists
“It’s not dead, it’s just different.” South Florida resi slowdown persists
Danielle Hale
Slowdown is “paradoxical:” Realtor.com’s chief economist on Miami housing market’s future
Slowdown is “paradoxical:” Realtor.com’s chief economist on Miami housing market’s future
From left: Ansorg Development's Karl-Ulrich Ansorg, Tulip Group's Kobi Elbaz, Ofir Gabriel, and Amit Kort in front of 234-264 Northeast 34th Street in Miami (Getty, Google Maps, YouTube/Tulip Group Thailand, usbotschaftberlin, Public domain - via Wikimedia Commons)
Inside look at planned Edgewater mixed-use condo tower
Inside look at planned Edgewater mixed-use condo tower
Florida Atlantic University processor Ken Johnson and Brown Harris Stevens' Sheila Rojas (Florida Atlantic University, Brown Harris Stevens, Getty)
Record rent hikes had slowed. Ian may change that
Record rent hikes had slowed. Ian may change that
Ron DeSantis and Peter Thiel (Illustration by The Real Deal with Getty)
Peter Thiel on Florida real estate: “becoming like California”
Peter Thiel on Florida real estate: “becoming like California”
Affiliated Development co-founder Nick Rojo along with 9445 Fontainebleau Boulevard in Miami (left) and the Bohemian apartment project in Lake Worth Beach (right) (Getty Images, Affiliated Development, Google Maps, MSA Architects)
“Slamming on the brakes”: South Florida’s record rent hikes slow
“Slamming on the brakes”: South Florida’s record rent hikes slow
Clockwise from top left: One Sotheby’s Jorge Uribe, Compass' Ida Schwartz, Fortune International Group's Edgardo Defortuna and Royal Palm Companies' Dan Kodsi (Illustration by Kevin Rebong for The Real Deal)
Slowdown hits South Florida’s hot resi market: Here’s what that means
Slowdown hits South Florida’s hot resi market: Here’s what that means
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...