With the crisis that started in sub-prime mortgages now wreaking havoc on credit, equity and commodity markets and bringing down banks across the US and Europe, the world’s financial centres are bracing themselves for another kind of fallout – this time in prime residential property.

It’s still too early to gauge what the long-term effects will be and analysts warn that each city will respond differently but, anecdotally, sales of centrally located, high-end houses and apartments are slowing, while prices are stagnant or slipping. Estate agents from London to New York, Zurich to Singapore say this can only be exacerbated by the past few weeks of turmoil.