Marble Arch: 020-7724-3100
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Sales Market Comment Spring 2015

By Eitan Fox  //  Mon 7th December 2015
Even industry pundits were expecting a marked slowdown. However, our experience points to a very different picture.
Media reports are that prime central London property market is slowing down due to uncertainty leading up to the general election in May.

Even industry pundits were expecting a marked slowdown. However, our experience points to a very different picture.

There has been many more foreign investors than anticipated, mainly in the prince ranges up to £5 million. Indeed one client has purchased 3 flats in the same building at over £4 million per flat.

Whilst the market remains most active up to £2 million with international investors, several deals have also been completed between the £5-£10 million price range for owner occupiers.

Understandably our focus is on the prime central residential London market which has potential to be affected by new government tax laws.

However, we would do well to consider that other major countries of investment are equally having to readjust to their Governments bringing in new taxations, for example in Singapore a new 18% foreign investor tax has been introduced.

In Dubai prices in the emirates have fallen by 3% in the first few months due to weak oil prices and a strong dollar.

In Australia there is a potential burst in their property bubble with the Reserve Banks report advising investors of the potential dangers of a boom and bust cycle.

As many of these investors are from Asia, they are already turning their attention to the safe haven of London.

Greater investment may also come from South Africa, as the annual foreign personal investment allowance for couples has increased to £1.2 million from the 1st of April.

With the country’s election almost upon us, I predict the outcome will make very little change to sentiment of London’s prime central residential market as it is still considered to be the investment of choice.

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