News

Check out market updates

London / New York Market Trends: Surprisingly Similar (Jan.26, 2017)

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.

In Manhattan oversupply is becoming an issue in such locations as 57th Street (Billionaires Row).

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 ($1,612psf).
London is already a “tale of two cities” with outer London growing well (albeit slowing down) but with the traditional prime “villages” falling substantially now such as Chelsea (-13.5%), Notting Hill Gate (-9.7%) and Knightsbridge (-7.9%).
.
The “villain” in the prime London market is Stamp Duty (SDLT) at the high end of the market that is acting as a major deterrent. Many brokers are saying that the market is “dead” at the moment in this sector. In our view the market has not yet bottomed out.
.
Currency is coming much more in to play. Sterling has devalued by 20% since Brexit making London real estate a “bargain basement” buying opportunity for any US$ based buyers. London is very cheap for overseas investors/buyers currently.
.
Manhattan average prices are almost half of those of London so Manhattan is “cheap” for traditional investors/owners in London.
.
Manhattan property, just as Prime Central London property, remains an excellent and very safe long term investment asset class.
.
Source: Curzon, JK, Corcoran