London’s property market is alive again, after the UK election. David Cameron will continue as Prime Minister and this time, without the need of support from any other political parties. He is the one who said that the next crisis is coming. Read here: Next crisis is looming – PM of 6th largest economy in the world If all the reports are true, it seems that international buyers are queuing to re-enter the property market.
According to one Becky Fatemi, managing director of central London agents Rokstone, “The first five serious inquiries on properties started to come in just after midnight, and as of 10am this morning I have had over 50 inquiries on London property, via calls and emails.” Can it be this crazy I wonder but then again this is a story from an agent. So, one must also look at other signs and not rely on just one piece of news. ”
One major piece of uncertainty was from the Labour party which during this election lost big. Labour party said that IF they had won, they would introduce a mansion tax on homes costing £2m or more. Besides, with the Conservatives win, the current economic policy is likely to be stable. Of course the article also said that because London’s prices are already very high, the growth in property prices is likely to come from outside the capital. I trust this statement quite a lot, even with the growth in interest from the international buyers.
Today, whenever we see any Australian or even London properties being exhibited here, it’s almost always a high-rise and most of the time, the size is only sufficient for a single to stay. Or perhaps buying for the children who may be studying somewhere there. Do take note that the reason for this is simple. No property developer would be trying to sell a small unit here if they can sell bigger units. After all, even Hong Kongers or Singaporeans would still prefer bigger units even if their current place is not as big as countries such as Malaysia. The only reason for these high-rise small units is because of Affordability. Prices have gone way too high for them to be able to sell anything bigger at a lower price.
If whatever was reported in the online article is true, UK’s property market may continue to be vibrant for the next ten years. I think developers such as SP Setia or Eco World would be reaping huge profits in this case. Oh yeah, both of them are LISTED companies, even if you cannot afford to buy their properties in UK. If you believe this, better start making plans to visit London and the outskirts. Who knows, your next big chest of profit is coming from London.
written on 9 May 2015
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