Money Briefs: London's luxury home market in slump

London's luxury home market in slump

LONDON • A slump in super-prime home values in London is rippling down the luxury property market.

Sales values per sq ft for houses priced between £2 million (S$3.6 million) and £5 million fell by 8.4 per cent in the second quarter from a year earlier as political uncertainty deterred potential buyers, according to data compiled by researcher Lonres.

Selling prices for super-prime properties - those more than £5 million - fell 3.2 per cent.

Sales tax increases and Britain's decision to leave the European Union roiled London's high-end luxury property market last year.

Savills expects prime central London property values to stagnate this year and next before increasing by 8 per cent in 2019.

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Frankfurt a post-Brexit banking hub

LONDON • Deutsche Bank is preparing for a hard Brexit and will probably book the "vast majority" of its assets in Frankfurt, chief executive officer John Cryan told employees in a videotaped message.

Although Deutsche Bank will not need to set up a new subsidiary on the continent - unlike some non-EU rivals - it is likely Brexit "will impact us significantly", he said.

A year after Britons voted to pull out of the European Union (EU), the biggest banks are eyeing other potential locations for some London operations.

Frankfurt has emerged as a winner of the Brexit vote, with Standard Chartered, Nomura Holdings, Sumitomo Mitsui Financial Group and Daiwa Securities Group all picking the city as their EU hub. Morgan Stanley also has settled on Frankfurt for its European trading headquarters, sources said, and Citigroup is weighing a similar move.

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A version of this article appeared in the print edition of The Straits Times on July 21, 2017, with the headline 'Money Briefs'. Print Edition | Subscribe