House prices drop sharply again in Greenwich borough
The latest house price data from LSL was released today and once again show prices in Greenwich borough dropping by some of the largest amounts in London.
Last month’s data saw a sharp 2.6% monthly drop which has increased to 3.6% in the latest figures. Annual reductions are 8.5%.
New build flats are believed to be a big factor in falls.
Lewisham saw a monthly drop of 1.4% and an annual reduction of 6.6%.
What is interesting is these falls would have occurred before Crossrail’s delay was announced.
So you may ask, what Crossrail effect? Similar happened with the DLR when it came to Woolwich in 2009. Estate agents and developers ramped up effects but the percentage gains were no greater than many other areas of London without a new line.
That’s not to say it won’t have an impact in time. Crossrail offers far more than the DLR.
Top of the chart
LSL are one of the more comprehensive measures out there. The Land Registry are the most thorough data set but they have quite a lag. LSL are good at picking up trends.
Prices for the most expensive boroughs are notoriously erratic, as prices can be vast and numbers sold extremely low in places like the City of London.
A couple of sales in the City at £20 million a home can skew figures for the entire capital.
when having a shortage of houses prices rise. When building (a lot of) new houses prices drop
Surprise, surprise. It is only to be expected being as the whole of the borough is being plasted with expensive high rises that not many can afford in places they don’t want to live anyway.
Great news for first time buyers like myself.
The price drop ihas been long overdue but i’m still holding off until next summer as I think prices will reduce more (there is still a bubble imo)
Hopefully the Government doesn’t panic/react and try to prop up house prices.
I wonder the extent to which these figures are distorted by the new builds that are part of the peninsula masterplan. They are typically more expensive than most other parts of the Borough, and complete in blocks. It will be interesting to see the figures next year when the very expensive looking Riverside ones currently under development are included in the figures
Drawing statistics from monthly prices down to borough level meaningless anyway. How many sales does this really concern? If there happens to be one more 1-bed sold instead of a 2 bed last month, voila. Unless we want to make ourselves crazy and keep repeating this sort of ‘dramatic news’.
It matters GWST.
Yes we can’t look too much into it over one or two months, but it’s important for a longer term trend.
Perception is key (even if the perception my be incorrect)!
If potential buyers think that prices will drop in the future, they will hold off from purchasing now, which will cause a self-fulfilling prophesy and will snowball into a housing crash (and the opposite is true, causing a bubble).
That why Governments are feel the need to intervene with various schemes that prop up the prices.