Half Of All London Homes Over £1m Bought By Foreigners
Tony Gosling
tony at cultureshop.org.uk
Sun Feb 16 22:52:39 GMT 2014
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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