Your midweek property news update
Unlocking the Brexit deadlock, Asia's outlook and the clamour for London's green spaces
3 minutes to read
Boris in Brussels
Boris Johnson will dine with European Commission president Ursula von der Leyen this evening in an attempt to break the Brexit deadlock.
Much has been made of the possibility a deal may be reached during a two day EU summit starting on Thursday, however both the Times and the FT this morning quote sources who say tonight's dinner is intended to remove a political blockage with policy teams left to continue talks over the coming days. Downing Street is now denying (see the FT piece) that detailed talks will continue into 2021.
The clamour to be near London's green spaces
Price growth in prime outer London is outpacing central London in the final months of 2020 as demand for space and greenery remains strong after two national lockdowns, writes Tom Bill.
Average prices increased 1.6% between June and November in outer London, which includes areas like Wandsworth, Belsize Park and Chiswick. Prices fell 0.1% over the same period in prime central London.
Meanwhile, average rental values continued to fall in prime areas of the capital, pushed down by high levels of supply. However, activity levels remain well above the five-year average.
The investment outlook in Asia Pacific
As markets across the Asia Pacific region return to relative normalcy and markets move towards opening borders, buyer sentiment is recovering.
Some 17 of 22 prime residential markets tracked by Knight Frank Asia-Pacific are expected to see prices stable or increase in 2021, Stephen Wong writes in a comprehensive new outlook for the region.
A likely easing of tensions between China and the US is likely to buoy real estate markets during the coming year, as is the continued stimulus issued by central banks. Meanwhile logistics will be among the top performers once again as new buying habits formed during lockdowns prove sticky.
Stimulus fuels asset prices
Stock markets reached new highs overnight following more positive news on vaccines and a brighter outlook on further US fiscal stimulus.
With days to spare, the White House on Tuesday offered Democrats a $916 billion pandemic stimulus proposal. The parties are aiming to reach a deal ahead of the end of the current session, which is now scheduled to close next week.
The prospect of further stimulus, along with rock bottom interest rates, is fuelling a rally in asset prices that includes real estate. This a global theme being replicated across real estate markets as governments issue aggressive stimulus intended to stave off the worst economic effects of the pandemic.
In other news...
Why currency traders are optimistic about Brexit, San Francisco's 35% plunge in rents shows the effects of Tech fleeing the city, a pandemic home-buying boom marks turnaround in Mumbai, UK firms avoid hiring permanent staff during the November lockdown, UK grocery sales hit a record in November, China's factory prices fall more slowly, Primark’s plan to save the high street, Grosvenor pledges £90m to cut estate emissions, the future of the City of London, the path to net zero puts a heavy burden on UK consumers, and finally, the battle over ESG investing.