Global luxury resi markets feeling macro uncertainty

Collapsing commodities, stock market turmoil lead to slowdown for high-end properties

TRD New York /
Jan.January 20, 2016 03:06 PM

Don’t think that luxury housing markets are insulated from ongoing macroeconomic uncertainty and turmoil in the global stock and commodities markets.

The foreign investors that have massively influenced the run-up in property values over the past several years now have to contend amid weakened currencies, collapsing oil prices and continuing stock market uncertainty. And signs show that’s all started to affect demand for high-end homes.

While average prices of luxury homes in 10 “global cities” are still expected to rise 1.7 percent this year, that’s down from 3 percent growth in 2015, according to the Wall Street Journal.

New York saw prices for luxury properties curtail toward the end of last year, and a similar trend is expected to take place in markets like Paris, Hong Kong and Singapore, according to real estate consultancy Knight Frank.

The South American and European buyers who have driven much of the Miami market may also be inhibited this year due to a stronger dollar, Knight Frank said, while residential markets in Sydney, Vancouver, San Francisco and Amsterdam appear “significantly overvalued,” Swiss lender UBS Group said in October.

And then there’s London — where upscale housing rivaled New York in terms of demand and pricing, but where “the frenzy is gone completely,” according to Manish Chande of U.K. real estate firm Clearbell Capital.

“Everything was going like hot cakes [18 months ago],” Chande told the Journal. “Today it’s the total opposite.” [WSJ]Rey Mashayekhi


Related Articles

arrow_forward_ios
Here are the week’s top luxury sales

Here are the week’s top luxury sales

Here are the week’s top luxury sales
Clockwise from left: John D. Rockefeller, Izzy Englander, Steven Mnuchin, David Koch, Jacqueline Bouvier, and William Zeckendorf (Credit: Getty Images and StreetEasy)

For 15 years, David Koch lived at the world’s “richest building”

For 15 years, David Koch lived at the world’s “richest building”
Here are the week’s top luxury sales

Here are the week’s top luxury sales

Here are the week’s top luxury sales
Ghost Towers

NYC’s ghost towers: How many Manhattan luxury condos are owned by people who don’t live there?

NYC’s ghost towers: How many Manhattan luxury condos are owned by people who don’t live there?
Ashraf Pahlavi and 29 Beekman Place (Getty, Compass)

Iranian princess’ Midtown palace finally finds a buyer

Iranian princess’ Midtown palace finally finds a buyer
525 West 52nd Street (Credit: Google Maps and iStock)

Luxury apartments pivot to virtual activities

Luxury apartments pivot to virtual activities
29 Beekman Place and Princess Ashraf Pahlavi (Getty, Courtesy of Zillow)

Inside the battle for an Iranian princess’ Midtown mansion

Inside the battle for an Iranian princess’ Midtown mansion
29 Beekman Street (Credit: StreetEasy; Google Maps)

Midtown East mansion with ties to shah of Iran gets another steep price chop

Midtown East mansion with ties to shah of Iran gets another steep price chop
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...