The London property market has set yet another world record with the sale of a £140m ($237m) apartment. This sale is the latest in an increasingly out of control property boom amongst Chinese, Russian and Arab billionaires.
London is now the go-to location for the super-rich from countries outside the Western world. The boom has raised real concerns that ordinary British people will be priced out of the housing market in London as a result of the ‘knock on’ effect.
Nick Candy from the developers of the flat, One Hyde Park, admitted things were getting out of control. He told Reuters: “We’re in boom-time prices, more expensive than we’ve ever been in the history of mankind.
“There is a concern over the market overheating … Everyone thinks the main central London is doing so well, (so) the ripple effect is going throughout the UK, and some of the prices being achieved are probably unrealistic and not sustainable.”
A source told the news agency that an Eastern European buyer had paid the eye-watering price tag for the 16,000 sq ft penthouse. It is expected to be worth around £160m – £175m once it has been furnished.
Britain’s previous record for an apartment was set three years ago by Ukrainian billionaire Rinat Akhemtov, who paid £136 million for a penthouse and apartment at One Hyde Park to knock together into one property.
The development is owned by CPC Group and Waterknights, the private company of Qatar’s Sheikh Al Thani. The Sheikh is a controversial figure in London having been banned from a popular gay nightclub in 2005 after a brawl. He denied knowing that the London club “G-A-Y” was intended for gay customers.
The takeover by foreign buyers is now a major concern to policy makers in Britain, as there is very little control over who is buying or what their background is in their own country.
Follow Andre Walker on Twitter: @AndreJPWalker
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