Tuesday, July 5, 2011

Another Housing Bubble in London

One signal of a housing bubble is buyers paying too much for amenities they could add themselves much cheaper. California was rife with this where granite counters which would cost 35k to install would increase the price 100k-150k. The same is happening in London, where amenities with known fixed costs, like wine coolers or a building squash court, are disproportionately increasing the "value" of the entire square footage. The London twist on this is shared amenities, but still, increasing the cost per square foot by 500£ to cover a doorman's salary and a screening room is buying frenzy territory.

Luxury’s Not Enough for Elite London Homebuyers
“Luxury isn’t enough,” Miles-Brown said by telephone. People using “words like prime, super-prime and uber-prime are looking for ways to redefine the word luxury.”
This sounds suspiciously like China's ever more creative property advertisements.

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