London / New York Market Trends: Surprisingly Similar (Jan.26, 2017)
London / New York Market Trends: Surprisingly Similar
Manhattan & Prime Central London Prices Adjust Down
In London and New York both “Prime Central Markets” are cooling.
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In Manhattan oversupply is becoming an issue in such locations as 57th Street (Billionaires Row).
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Sales Prices in Manhattan have “adjusted” (dropped) by (-8%) with the average sale price being $1.99m, equating to $1,851psf (£1,492psf)
Across London as a whole prices have dropped (-6.3%) over the last 12 months, with Prime Central London “average” prices currently hovering around £2,000psf ($1,612psf).
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London is already a “tale of two cities” with outer London growing well (albeit slowing down) but with the traditional prime “villages” falling substantially now such as Chelsea (-13.5%), Notting Hill Gate (-9.7%) and Knightsbridge (-7.9%).
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The “villain” in the prime London market is Stamp Duty (SDLT) at the high end of the market that is acting as a major deterrent. Many brokers are saying that the market is “dead” at the moment in this sector. In our view the market has not yet bottomed out.
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Currency is coming much more in to play. Sterling has devalued by 20% since Brexit making London real estate a “bargain basement” buying opportunity for any US$ based buyers. London is very cheap for overseas investors/buyers currently.
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Manhattan average prices are almost half of those of London so Manhattan is “cheap” for traditional investors/owners in London.
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Manhattan property, just as Prime Central London property, remains an excellent and very safe long term investment asset class.
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Source: Curzon, JK, Corcoran