BLOOMBERG – August 1, 2018: The article highlights that from London to Sydney and Beijing to New York, house prices in some of the world’s most sought-after cities are heading south.
All this is due to tax changes to damp demand, values out of kilter with affordability and tougher lending standards have combined to undermine the market – to have wider implications because the world’s wealthy have been buying homes on multiple continents, meaning a downturn in one country could now pose more of a threat to markets elsewhere, according to the International Monetary Fund.
The research data shows cracks appearing in some of the world’s most exclusive and desirable property markets.
London: Prices in the U.K. capital are starting to fall as fears linger about the impact of Brexit, a slowing economy and high prices damp demand.
Manhattan: And home sales in New York’s most expensive borough have been falling for three straight quarters, allowing buyers to be picky as inventory rises and fears grow that prices climbed too high, too fast.
Toronto: The city of Toronto shows that house prices can quickly bounce back after a fall, but there could be problems ahead in the form of escalating trade tensions with the U.S. and the possibility of further interest rate hikes.
Sydney: And home prices in Australia’s biggest city are slumping due to a combination of credit curbs, stretched affordability and the end of the “fear of missing out.”