It is already obvious that London’s real estate market is in bad shape as it faced such additional problems as higher taxes and warning from Bank of England on possible price decline by 30% in case of worst Brexit scenario, Bloomberg reports.

Bloomberg described four hidden reasons, for which London’s market may be even worse than it seems.

Property flippers are suffering from demand slump for new apartments. In some cases, apartments in high towers that are almost finished are sold 25% below the price at which they were reserved. Such deals are not reflected in government data.

Everybody knows that sales of homes in London are falling. Not everybody knows however that now they are at the record low level. Each real estate office sells just 8 houses in three months. Sales measures for 12 months through October tell that it is at the lowest level at least since 1994.

Developers are suffering in this situation. Number of new real estate objects that still are waiting for new buyers grew by almost half this year to the record level. New homes sales in the center of London may show decline by 25% this year. This is why developers are moving to other regions.

Besides, developers are offering more incentives for purchase. Especially, after government is considering stamp duty for overseas buyers. Demand from Asia already declined due to higher taxes. This is why developers have to offer discounts by paying some part of duties, while some of them are sending representatives to Saudi Arabia and other countries to look for new clients.