Half Of All London Homes Over £1m Bought By Foreigners

[Tony Gosling]

Foreigners Bought Half Of All London Homes Selling For Over £1 Million

http://www.zerohedge.com/news/2014-02-16/foreigners-bought-half-all-london-homes-selling-over-£1-million
Submitted by 
<http://www.zerohedge.com/users/tyler-durden>Tyler 
Durden on 02/16/2014 13:33 -0500

Actually, according to the first detailed 
estimate of international purchase activity in 
London by Knight Frank, the percentage of all 
central London homes that sold for more than 1 
million pounds to foreigners in the 12 months 
through June 2013, was 49% to be exact. And as we 
showed 
<http://www.zerohedge.com/news/2014-02-15/chinas-liquidity-bubble-hits-record-china-banks-issue-50-more-loans-fed-and-boj-qe-c>yesterday 
when we put China's loan creation in the context 
of US and Japanese QE, keeping in mind the use of 
proceeds of all this newly created inside money 
has to ultimately go somewhere - that somewhere 
in this case being London and other global luxury 
real estate, said percentage is only going to get 
higher. Especially when one adds Russian, the 
middle east and other various regions whose 
oligarchs are desperate to park their money in "safe" havens.

Some other findings from the Knight Frank report:
    * Over the 12 months to June 2013, 49% of all 
£1m+ sales in prime central London went to foreign buyers by nationality...
    * ...however only 28% of buyers were non-resident in the UK
    * Over the two years to June 2013 51% of 
new-build purchases in the prime central London market were by UK residents...
    * ...across the remainder of inner London the portion was 80%...
    * ...and across outer London 93% of sales were to UK residents
    * Our estimate is that over the past two 
years 85% to 90% of all new-build purchases in 
Greater London have been to UK residents
Just as notable - foreigners love new 
construction: in the two years to June 2013, 69% 
of prime central London new-build purchases were 
to foreign buyers by nationality.

And here, a tangent: those two main instances of 
Emerging Market tremors that we have seen over 
the past year as a result of QE - well, let's 
just say that they better normalize soon, and 
funds resume flowing toward the EMs rather than 
out of them or else, the London (first) and soon 
after all other luxury residential markets get it...

Emacs!


Source: 
<http://resources.knightfrank.com/GetResearchResource.ashx?versionid=2017&type=1>Knight 
Frank
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