London's $3.1 million-worth of real estate properties does not look appealing anymore as the sales go down according to eMoov.co.uk, an online estate agency.
The percentages of the properties sold versus that of the previous year does not look great. This was due to the low demand of properties in the highly-expensive areas of Central London which is down by as much as two-thirds between June and October.
According to eMoov, the worst-hit areas was Maida Vale,a residential area in northwest central London. The demand fell by a 66 percent of the last three months. Moreover, the areas of Chiswick, Fitzrovia and Primose Hill have also seen significant downturn in sales as a proportion of inventory falling by a quarter or more in each district. Data used by the agency were collated from Rightmove and Zoopla.
This is in spite of shortage of housing in London, a large quantity of high-end houses are available.
Several circumstances may have led to the slowdown of expensive London properties. One of which is the U.K election in May. An increase of 9.9% of prime properties with an effect of 8% decrease in demand is experienced in the wealthy territory.
Moreover, the economic crisis of China may also have daunted some Chinese billionaires and wealthy men to make investments abroad.
"We, along with many others, predicted a tough time for prime central London since 2014, and it would seem this has now well and truly come to fruition. It would seem the foreign London property investors have started to cash in their chips, whilst the high-end estate agents might have started pawning their Rolex's," said founder and CEO of eMoov.co.uk, Russell Quirk, in a report out on Friday.
On a lighter note, demand from Thailand is increasing as upscale retail agency, Knight Frank, reported. And the area of Nottinghill is outperforming the others as it experiences 112% increase in sales.
What are your thoughts about the slowdown of London's expensive real properties?
