It's not just Sydney: The end of the global housing boom
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From London to Sydney and Beijing to New York, house prices in some of the world’s most sought-after cities are heading south.
Tax changes to damp demand, values out of kilter with affordability and tougher lending standards have combined to undermine the market. That could 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.
It’s not just in Australia: Some of the world’s hottest housing markets are becoming increasingly unstable.
Photo: Louise Kennerley LAK
These charts explain the cracks appearing in some of the world’s most exclusive and desirable property markets.
London’s falling sales
Prices in the British capital are starting to fall as fears about the impact of Brexit, a slowing economy and high prices damp demand. Sales volumes are down and more properties are being offered for sale as sentiment turns. Properties in central London’s best districts have fallen almost 18 per cent since their peak in 2014, with some homes losing as much as a third of their value, according to research by Savills. At the same time developers began work on a record number of pricey apartments, creating a glut of multimillion-pound penthouses in a city with a chronic shortage of affordable housing.
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