China's Greenland Group launched its Spire project to much hope in east London in 2016. Back then, according to The Financial Times, the property was supposed to provide luxury apartments, a spa, fountains, and lifts. However, the building site fell into decline, citing a "change" in the residential sector in London, where the Spire was "soon to rise."
These and more changes in the prime London real estate market have been obvious. Prices in the market have fallen by more than 20 percent since.
While developers have said the project will go ahead, the stalled site remains a stark reminder of the previous financial crisis, where projects similar to this--from the West to the East--remained in a state of incomplete construction.
This time, the stalled development is a stark reminder that the global real estate boom is coming to a halt. After nearly a decade of cheap, abundant money flowed through property markets following the financial crisis, stores are shutting down, new-build apartments remained empty, and listed real estate securities worldwide have traded in "steep discounts."
The real estate world's loss, however, might be the job market's gain. Across the world of the elite, The Economist reported that a "jobs boom" might be happening. Both Trump and former British prime minister Theresa May said that unemployment is going down. Employment opportunities have been brandished about by the politicians and their governments, but the fact remains that it is down not because of them.
It's the rich world that is making the best out of this situation. The world of the rich is plentiful with opportunities, and the opportunities themselves are also getting better.
Capitalism is at an all-time high; it is on the way to creating better chances for workers, solving problems faster than it had in years. Labour markets have been able to create a better bargaining power because of this.
After eleven years, it does appear that the job market is doing better than the real estate market. Real estate markets look a lot different from before the crisis, yes; debt levels have become lower and mortgage regulations are tighter. However, the influx of cash has given rise to worries that a price bubble may be waiting to burst.
There are worries that have since been baseless, like when risk-taking investors braved the supposed 2016 market crash. The risks have been rewarded with profit since no market crash materialized. It's just a matter of proper analysis whether a 'price bubble' really exists or not.
