|Nine Elms regeneration zone|
There is a striking disjunction between the desperate shortage of affordable housing in the capital, and the extraordinary panorama of cranes, pile-drivers and high-rise residential blocks in various states of construction visible from almost anywhere in the city with a view.
Even more extraordinary, at least to someone unfamiliar with London's dysfunctional property market, is the fact that many of the newly completed apartments transforming the skyline are empty, bought off-plan by overseas investors as convenient assets in which to stash their cash. But now it appears that all is not well in the luxury homes trade.
|Battersea Power Station|
Last month Morgan Stanley warned that prices of new, upmarket London flats could fall by as much as 20% this year, and the International Business Times reported that Chinese investors who bought apartments off-plan in the Battersea power station development are having second thoughts now the time has come to pay the balance on their relatively small up-front deposits. Those in the know are clearly expecting trouble: although pre-tax profits at the estate agent Foxtons only fell by 3% last year, investors knocked 33% of the share price. If these are the first signs of a bursting bubble, it would be good news for anyone who thinks of four walls and a roof as home, rather than an offshore shelter for their dodgy money.
More pictures here.
|Construction of Alto Apartments, Wembley|