Home prices in London districts typically favored by bankers are falling as bonus payments drop and career promotions are delayed, according to a report compiled by Knight Frank.
Bloomberg News reports that values in Knightsbridge declined 6.8% in the year through March, while they were down 4.9% in South Kensington and 2.5% lower in Chelsea, the broker said in a report Monday.
“In the old days we would see a pick-up in activity in the first two months of the year from bankers who had an idea what their bonus would be,” James Pace, head of Knight Frank’s Chelsea office, said in the report. “That has now completely disappeared.”
Sellers of luxury homes in the capital are cutting asking prices by more than ten percent as high valuations, subdued pay awards and falling commodity prices reduce demand.
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