Photo: Apartment building in Sydney, Australia.
Since the 2008 financial crisis, housing markets around the world have begun to show signs of recovery.
Nevertheless, the real estate market in some of the world’s largest and most popular cities continues to cool.
So which cities are struggling to sell?
london
Although previously consistently ranked as one of the leading luxury property markets, the London market has calmed down considerably in recent times.
Indeed, owners of expensive property in the capital region will see limited improvement in the coming years, with Brexit uncertainty proving to be the main factor, Savills recently said. .
Additionally, a stamp duty surcharge of 1-3% for overseas buyers is also expected to impact the market in the coming years.
While there are encouraging signs for real estate in other parts of the UK, house prices in London have continued to fall in recent years.
Investors will be closely watching the chancellor’s autumn budget speech in October to see whether Hammond intends to take on further measures for the property market.
sydney
The housing price slump doesn’t seem to be limited to Europe, with Sydney’s property market also continuing to decline.
Statistics show Sydney’s median house price has fallen 4.4% since the start of the year.
By individual capital, the number of listings in Sydney and Melbourne has also surged by 19.5% and 18.4% respectively in the past 12 months, pushing down demand.
Additionally, ABS’s recent survey of house prices also shows signs that the market is cooling.
Sydney house prices fell for the fourth straight quarter in the June quarter, according to the latest Residential Property Price Index data.
Specifically, prices in Sydney fell by 1.2% during the same period, while prices in Melbourne also fell by 0.8%.
new york
Several large cities in the state have shown signs of recovery since the housing bubble burst in 2008.
Nevertheless, the Big Apple is not necessarily the best place to consider investing, although cities such as New York have proven to be more resilient.
According to Trulia, New York City home prices are below the national average.
Home appraised values in New York increased by 31% between 2012 and 2018.
This proved to be significantly behind cities like Los Angeles, which saw a 68.4% increase over the same period.
If the significant decline in home prices across these large cities is to be meaningful, looking beyond the big cities may be key for investors going forward.
