Yet more evidence of the insane house prices in London came out in this FT article which showed that in London houses earn as much per day as the average worker!
Yes, the capital gains in the capital are such that every day, on average, a central London property earns the average wage.
Stupid and bad! I own property in London and I’m unhappy about these gains. It’s pushing out young people, families and indigenous people generally. If we don’t watch it, London will just house the old and the foreign. In fact, the way it’s going at the moment it will hardly ‘house’ anyone, it will be just a load of empty spaces costing money. It’s nasty.
Mind you, given that there is a tonne of residential property being built all over the capital, particularly in the City, in a couple of years we might find there’s a glut of property and prices crash, at least a bit. I don’t know because there are so many factors that affect it – for a start, all we need is a few more countries in the Middle East to go mad or Europe to have a bit of a crash and a load of people with money will rush into London and New York property again.
Property in London, New York and Hong Kong acts like gold – when everything else is in flux, people put their money in these things.
So, I don’t really know and can’t predict, but surely, at this stage, we must see these vertiginous gains as part of yet another bubble?