Friday, 17 December 2010
London Luxury Property Market Sees Biggest Price Reduction in History
A townhouse in Knightsbridge has been sold at the biggest price reduction ever seen on a piece of luxury real estate in the city of London. According to the Daily Mail, the home was sold after being reduced by £22 million. The original asking price was a jaw-dropping £40 million – final sale price £18 million. The seller was apparently holding out for a Russian Oligarch, and the entire house is fitted out as a magazine shot, which appeals to Russian buyers I understand.
Things are not going well for the Oligarchs currently, with Russia’s luxury goods market in tatters – and despite headlines throughout the British press claiming that foreigners are bailing out the British luxury property market – Russian buyers are pretty thin on the ground at the moment.
This is certainly the biggest price drop I have ever heard of in London and some agents are calling it a “bargain.” I reserve judgment on that, but it certainly will give other sellers pause for thought. The buyer was – unsurprisingly a banker. Well, a bond trader actually who was in the news some time ago for having dated Heather Mills, Paul McCartney’s now ex-wife.