Download file to see previous pages...
This gives possibility to assume that the house price bubble already exists in London and threatens the local real estate market.
To understand how dangerous a house price bubble is it is necessary to clarify its definition. A house price bubble is a type of economic bubble – “trading in high volumes at prices that are considerably at variance with intrinsic values” – on the real estate market. (King R. et al, 1993). Housing market bubbles are more critical than stock market bubbles. While equity price busts occur on average every 13 years, last for about 2,5 years, and result in nearly 4 percent GDP loss, the housing price busts are less frequent, however they last almost twice longer and lead to twice larger output losses (IMF World Economic Outlook, 2003). Real estate markets involve longer boom and bust periods, according to the recent research (Ikhomov N., Yavas A., 2012, 508-535).
It is reported that “house prices in London have fallen for the first time in nearly four years, and will continue to do so, according to a leading property market barometer.” (White A., 2014). The longest period of positive sentiment was recorded yet in January 2011 by the Royal Institution of Chartered Surveyors, and since then a drop in values in the capital was finally reported. In October 2014, the 12 month report predicted house price rise: 2,1 pc for the UK regions and 1pc for the capital. (White A., 2014).
“A chorus built for rate rises and special intervention in the mortgage market. Now the alarm calls are fading. A foreign capital flood has receded in London, home-loan approvals are down and house price inflation is easing. Bubble fears were premature. The talk of danger was spurred by fast annual house price rises – especially in London, where the annual increase in prices was 20.7 percent in the third quarter, based on data from mortgage lender Halifax. The national picture was less frothy, with an annual gain of 9.6 percent.”
...Download file to see next pagesRead More
Hence, Chinese housing prices are in a rising trend for the 4th consecutive month. Reasons for Sudden Demand for Private Houses Nearly 16 provinces in China raised their minimum wage levels by 19.7% in 2010. The salary earned by the youngsters in China is nearly equivalent to the salary earned by mainstream Americans in all professional fields.
There are, however, additional duties which in-house counsel typically fulfill and a brief look at the in-house counsel at Price Waterhouse is illustrative in this respect. This essay, in particular, will address how in-house counsel function as advisors to other departments and the training functions which they perform within their business organization.
A full list of the references employed has been included.
The Shanghai market has been the focus of much attention in China and abroad as its real estate markets takes off with impressive vigor. Since the 1997 Asian Financial Crisis, Shanghai has succeeded in capitalizing on the demand for prime Asian commercial real estate by opening up its markets to foreign investors and local purchasers alike.
Due to irresponsible speculations and other influences that entice careless investors to buy commodities or stocks to a unreasonable level this phenomenon inflated prices to an unrealistic level that would eventually
Throughout the past so many decades London has maintained a history of attracting property investors from all over the world, thanks its ideal location along with guarantee of a peaceful and secure place to live in.
The crisis stated in 2007 with house prices rising by a great percentage (Clark, 2014, p. 1). Many are also questioning the economic impact of the housing bubble in London and its ability to spread somewhere else. From history
Limited supply tends to increase real estate price and this is a major danger in many geographical regions.
House price bubble is observed in many locations but London in recent years is facing challenge of a price increase in
3 Pages(750 words)Essay
GOT A TRICKY QUESTION? RECEIVE AN ANSWER FROM STUDENTS LIKE YOU!
Let us find you another Essay on topic There is a real danger of a house price bubble in London. Discuss for FREE!