Carney may have to revise up his house price forecasts that he made earlier
At the Treasury Select Committee hearing earlier Carney forecast that house prices would rise 5-5.5% a year
He may need to revisit that quote as the London Evening Standard report that yesterday £140m in luxury flats in London's Canary Wharf sold in 4 hours
People were queuing for 36 hours to get in on the act and if that wasn't surprising enough, the flats haven't even been built yet
What's also interesting is that half of the purchases were made by overseas buyers and half from UK buyers. A lot of these sales have previously seen a bigger percentage of foreign buyers. 50 properties were sold to Chinese investors in Hong Kong. There were 208 flats sold from a total of 297 due to be built, with studio to 1, 2 & 3 bedroom flats ranging from £350k to £1.25m
The building completion isn't expected until 2018/19
That's big news for London as it underpins the confidence in the housing market and the economy in general.
Before the crisis this sort of thing was a regular occurance in London but construction companies took a big hit on the GFC. This will be a big boost to them and construction overall, as well as household mortgage borrowing
Flat sales: £1.25m and you probably couldn't swing a cat in them