From New York to Sydney, real estate prices are falling

From London to Sydney and Beijing to New York, house prices in some of the world’s most sought-after cities are falling, reports Bloomberg.

Real estate prices in the most desirable neighborhoods in London have fallen by 18 percent since 2014, when the market peaked, with some houses losing as much as a third of their value. At the same time, expensive apartments are being built to attract wealthy buyers, while affordable properties are chronically lacking.

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China has put an end to high prices by confronting builders with financing restrictions, leading to a freeze in sales. Beijing is trying to promote rentals, affordable housing, and government subsidies, which has caused many to postpone purchases.

Prices are also falling in the largest cities in Australia, primarily due to stricter lending conditions, especially for investors.

In New York’s most expensive neighborhood, Manhattan, prices have been falling for three consecutive quarters, making buyers more selective. At the end of the second quarter, there were nearly 7,000 apartments on the market, 11 percent more than a year earlier. Sales fell by 17 percent to just over 2,600. Luxury apartment prices remain inflated, while the median home value has dropped by 7.5 percent to $1.1 million.

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Toronto, on the other hand, shows that prices can rise very quickly after a fall, but due to escalating trade tensions with the U.S. and potential interest rate increases, there could be problems. Real estate prices have recovered after a drop in April last year, and demand continues to exceed supply, although the government is trying to prevent speculative buying.