Home prices in London's most-desired districts at 6-year low
London
POLITICAL chaos and a series of tax hikes pushed the average price of a home in London's most-desired districts down by almost 5 per cent last year, paring it to a low not seen since the start of 2013.
Home prices in the British capital's prime postcodes - which include Chelsea, Islington, Kensington and Mayfair - dropped 1.5 per cent in the final quarter of 2018 as lawmakers failed to reach an accord on Brexit, data compiled by broker Knight Frank showed. That extended the decline for the year to 4.6 per cent.
London's high-end house prices have been hit by a succession of tax reforms that have boosted the sales-tax bill for the most expensive homes to as much as 15 per cent of the purchase price.
The hikes, coupled with uncertainty about the country's political and economic future, has decimated the market for homes and reduced transaction levels to historic lows.
"Both pricing and sales volumes were on a downward trajectory in the second half of 2018," Knight Frank's head of London residential research, Tom Bill, wrote in the report.
The downturn highlights "the impact of political uncertainty over the last six months".
Prices in the best areas around the edges of central London, where thousands of new apartments are being built, fell at a near identical pace to the prime areas and are now at a five-year low, the broker said in the report on Monday.
Those districts include Canary Wharf, Hampstead, Richmond and Wimbledon.
Pockets of housing-oversupply in some of those regions are also eroding values. BLOOMBERG
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Property
Homebuyers shun new real estate in Vancouver, hurting builders
US pending home sales jump in March to hit highest in the year
Blackstone strikes US$1.6 billion student housing deal with KKR
European real estate deals slump to lowest level in 13 years
Singapore Q1 industrial rents rise further as occupancy dips and prices fall: JTC
Condo resale volumes rebound in March; prices inch up 0.4%: SRX, 99.co