The FT reports this morning that:
Since 2012, developers [in London] have begun building 44 per cent more homes than they have managed to sell. Last year, work was started on 1,900 luxury apartments, but only just over half have sold.
The reaction being:
I’m forever blowing bubbles,
Pretty bubbles in the air,
That’s the tale of the modern London apartment block for you.
And that’s the tale of market failure.
High prices call forth more supply which then lowers prices.
That’s market failure?