Property market out of flavour...but 4.25 to 1.25 that is an over reaction surely!

Lancaster Gate - dubbed the Lancasters is one of their projects in London. Are property prices falling in London...

From The Sunday Times
February 17, 2008
Super-rich snap up apartments in world's most expensive residential scheme

RECESSION, what recession? The super-rich are snapping up apartments at the world's most expensive residential scheme at Londons One Hyde Park as if they were going out of fashion.

According to data released exclusively to The Sunday Times, half of the 80 apartments at the luxury scheme designed by Richard Rogers have already been contracted to be sold even though the project will not be completed until 2010. Knight Frank, one of the estate agents handling the Knightsbridge development, said sales already totalled more than 500m and the average apartment price had reached 20m.

Wealthy oil barons, Russian oligarchs and hedge-fund managers are shelling out at prices that break down to almost 6,000 per square foot for the chance to own one of the apartments. That figure is up from 4,000 per square foot in late 2006.

The sales reflect Londons status as a global city, with 39% of the buyers hailing from Russia, 25% from the Middle East, 14% from Britain and 11% from continental Europe. The highest price paid for an apartment at the scheme is rumoured to be more than 100m. The interiors are the work of Candy & Candy, the interior design company run by Nick and Christian Candy, two brothers in their early thirties who have become multi-millionaires by creating fantasy homes for people with limitless budgets.

The site will have an underground passage to the nearby Mandarin Oriental hotel, where staff will be on hand to cater to residents needs.

CPC, the Guernsey-based investment company owned by Christian Candy, has an equity stake of more than a third in One Hyde Park. The scheme is also backed by Sheikh Hamad bin Jasim Jaber al-Thani, foreign minister of the Gulf state of Qatar.

Liam Bailey, head of residential research at Knight Frank, said sales of so-called super-prime homes in London worth 10m or above had more than doubled in the three months to the end of January compared with the same period last year.

He said: It is quite extraordinary the way the super-prime market has continued to surge ahead. Sales of homes worth 1m-5m have slowed, but once you get above 5m, and certainly above 10m, they are still powering ahead.

Many punters being sucked in now. I just placed a large short trade.
Fantastic stock for shorters.

short on confirmation of covenants relaxed you must want to lose money

40p could be taken out very soon and then you will wished you had not waited to buy

last orders sub 40p! many will be kicking themselves tomorrow when this opens up even higher tomorrow

Clubman you deramper but I do agree this is being heavily ramped on all BBs and a fall back to low 30s is possible in the gap now until results and mass profit-taking that will ensue

Many people don't research that is there own mistake

Fundamentally we all know this is overpriced in comparison to their NAV but that will become clearer upon results next month

DYOR
DYOR

Just increased my short position, used the wife and childrens savings pot. Should be able to put it back in a couple of days and buy my new beamer

whatever clubman, i sold and locked in my profit, before the pump and dumpsters do

Good call benz. Now go short and make some big money

i followed these a while back, good news that they have completed negotiations, huge debt though and not a dead dog, alot of ramping everywhere on this stock, with the market sentiment changing as the DOW clearly indicated last night, illiquid stocks like this will fact back quickly and sharply, may have another look next week if there is anything in their results to suggest these are undervalued

Cant beleive I bought these at..6p.

These are going all the way.