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London homes no longer world's priciest
Ellen Widdup23 Mar 2009
LONDON is no longer the most expensive place to buy a home.
The capital has seen one of the biggest falls in value of any part of the world and property is now priced at £26,300 a square metre. It was knocked off its top spot by Monaco where residential space is almost twice as expensive at £47,000 per square metre.
But London still beats Manhattan at £15,500 a square metre. The annual Wealth Report, compiled by Citi Private Bank and estate agents Knight Frank, found the capital's prices were down 17 per cent, a slump beaten only by Hong Kong where homes are 25 per cent lower.
Liam Bailey, head of residential research at Knight Frank, said almost all of the world's wealthy represented by the survey had reported a fall in the value of their property portfolios last year, with prices either stalling or falling in three-quarters of cities.
"The figures paint a gloomy picture for prime residential prices round the world," he said. "It is now clear that not even the most desirable property round the world will remain immune."
The report shows that previously buoyant markets turned very quickly in the last months of the year.
Property prices in Dubai, for example, rose almost 11 per cent last year but fell by 19 per cent in the final quarter.
Reader views (5)
Sounds like its getting time to buy
- Georgie, Islington, London, 23/03/2009 18:38
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Recommend house-hunting in Manhattan - Bovery and Houston have never been cheaper! Upper West Side is crying out for British byers. SoHo's rents (Dean and DeLuca area) are sky-high, but condos are NOT selling...
Now or never.
- Manya, london, uk, 23/03/2009 14:56
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Dave, they have motgages mate, thats why they are not too impressed with low house values ! and its not greed that people take out Mortgages, there is very little alternative as the rented sector at the time was on a par with non rented , and there is very little public housing, so people relly had no choice but to buy.
What had pushed the markets artificially high was the people who buy to let and have several houses they rent out, not the ordinary guy just putting a roof over his/her families head.
Its not the people that have the problem, its govt and mortgage companies allowing this to go unchecked .
- Brian, Wiltshire, 23/03/2009 12:48
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Socialism, Dave, Socialism!
- Alan, Llandrindod Wells, 23/03/2009 12:29
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What I simply cannot understand is why everybody considers low house prices a matter for "gloom". We hate the bankers for their greed, but we want to ratchet house prices up to insane levels purely for personal profit and somehow that's all right.
What the hell's the matter with people in this country???
- Dave Markham, London, UK, 23/03/2009 10:28
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