How worried should investors be at the wobbles in Battersea\u2019s luxury flats market? For the FTSE 100 property boss discussing the matter over his turbot the other day, very.<\/p>\n
So concerned was he at the speculative bubble inflated by off-plan buyers in the sky above the Thames that it was reminding him of the monster crash of the early Nineties.<\/p>\n
In particular, he remembered the de luxe Point West development in Cromwell Road, which went bust, unfinished, in 1990, triggering a flurry of other luxury failures.<\/p>\n
Point West\u2019s collapse was one of the talismanic events that led everyone looking for luxury apartments \u2014 and the banks offering mortgages on them \u2014 to realise supply and demand was out of whack. Other big new schemes like Baltic Quay and Butler\u2019s Wharf collapsed too.<\/p>\n
The busts haven\u2019t begun this time around \u2014 partly because interest rates are low and builders aren\u2019t so indebted.<\/p>\n
But look at the supply-demand dynamic: only 3900 luxury flats were sold last year at a time London has 50,000 new ones planned.<\/p>\n
Capital & Counties has just admitted it has sold virtually no flats at its Lillie Square development in Earls Court since November.<\/p>\n
Little wonder some property veterans are harking back to the Nineties.<\/p>\n","protected":false},"excerpt":{"rendered":"
How worried should investors be at the wobbles in Battersea\u2019s luxury flats market? For the FTSE 100 property boss discussing the matter over his turbot the other day, very. So concerned was he at the speculative bubble inflated by off-plan buyers in the sky above the Thames that it was reminding him of the monster […]<\/p>\n","protected":false},"author":9,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[3,1],"tags":[],"class_list":["post-1614","post","type-post","status-publish","format-standard","hentry","category-news","category-uncategorized"],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p9PjAq-q2","_links":{"self":[{"href":"https:\/\/poseidon-gp.com\/property\/wp-json\/wp\/v2\/posts\/1614","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/poseidon-gp.com\/property\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/poseidon-gp.com\/property\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/poseidon-gp.com\/property\/wp-json\/wp\/v2\/users\/9"}],"replies":[{"embeddable":true,"href":"https:\/\/poseidon-gp.com\/property\/wp-json\/wp\/v2\/comments?post=1614"}],"version-history":[{"count":0,"href":"https:\/\/poseidon-gp.com\/property\/wp-json\/wp\/v2\/posts\/1614\/revisions"}],"wp:attachment":[{"href":"https:\/\/poseidon-gp.com\/property\/wp-json\/wp\/v2\/media?parent=1614"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/poseidon-gp.com\/property\/wp-json\/wp\/v2\/categories?post=1614"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/poseidon-gp.com\/property\/wp-json\/wp\/v2\/tags?post=1614"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}