As FT Alphaville and others have duly noted, the search for the ultimate safe haven alternative is on.
RBS now points to one possible alternative, London luxury-home prices.
From their European rates morning research note:
The central London luxury-home prices costing on average ·3.7mn rose 9.6% in the 12 months through July, the most in six months, as the European investor sought a safe haven from economic instability, according to Knight Frank real-estate index.
But are London house prices really a viable alternative?
If you consider them a reflection of the UK economy, perhaps not. But perhaps there is something to it if you consider them their own microcosm?
Besides, UK chancellor George Osborne certainly seems to think there’s something of a safe haven to Britain nowadays — he referred to the UK as a “safe haven in the storm” only last week.
And with UK gilts now officially yielding less than Treasuries, perhaps there really is something to taking refuge in one of the most sought after real-estate markets in the world?
We’ll leave it to the property experts to debate.
Related links:
Dick Bove says – the search for a new safe haven is on – FT Alphaville
London 2012 Olympics: Go for Olympic gold by renting your home: Landlords and owners stand to profit from London 2012 - The Telegraph