These global luxury markets are set to improve in 2020

Others are set for a slow in 2020

National /
Dec.December 30, 2019 04:00 PM
London, Los Angeles and Sydney skylines (Credit: iStock)

London, Los Angeles and Sydney skylines (Credit: iStock)

It was a tough year for sellers of high-end residential properties in many of the top markets across the globe. While 2020 could be more of the same in some cities, others are expected to fare better.

Oversupply will likely continue to hamper sales in Manhattan, Los Angeles, and San Francisco, as they did this year, according to real estate experts, Mansion Global reported. Manhattan’s market particularly is under pressure from unfavorable tax reforms, property tax hikes, political uncertainty, and the ongoing trade war.

And there’s oversupply in many of the top markets in the U.S. Compass chief economist Patrick Carlisle said there are 10 to 20 condo listings for every one buyer in San Francisco. In L.A., oversupply is a function of a stretch of speculative buying and mansion-building in the region’s toniest communities in the years following the recession. By some measures, there’s three years of supply on the market right now. In the last two years, many spec mansions have sold for steep discounts.

Federal tax reforms have sent buyers to Miami, but it’s also raised demand for properties in other cities in South Florida, which are giving Miami competition. Inconsistency in pricing has also turned some buyers off from the city, but stability could be around the corner of buyers continue to scoop up unsold condos and bring down supply, according to Mansion Global. Miami was one of the hottest luxury markets of earth in the 2010s.

New construction has held down pricing in Dubai and that is expected to continue into next year, although the upcoming Expo 2020 event could provide a short-term boost.

London and Sydney are expected to have stronger showings next year. London’s housing market — like the rest of the U.K. — has suffered over the last several years amid the political instability surrounding the country’s divorce from the European Union, but with Brexit scheduled for the end of January, confidence could come back in 2020. [Mansion Global] — Dennis Lynch


Related Articles

arrow_forward_ios
75 Park Lane South (Plaza Construction)
This year’s top-selling Hudson County homes
This year’s top-selling Hudson County homes
Daniel Grollo and 106 Central Park South (Photo Illustration by Steven DIlakian for The Real Deal with Getty Images)
Trump Parc condo tied to embattled Australian construction magnate hits market
Trump Parc condo tied to embattled Australian construction magnate hits market
42 Further Lane, East Hampton (Out East)
Luxury brokerage Hedgerow faces its toughest challenge
Luxury brokerage Hedgerow faces its toughest challenge
Hugh Jackman and 100 Eleventh Avenue #PHA (Getty, StreetEasy)
Hugh Jackman buys penthouse at Jean Nouvel tower
Hugh Jackman buys penthouse at Jean Nouvel tower
Bridgehampton, NY (Google Maps)
Divorce lawyer sells Bridgehampton home for $45M
Divorce lawyer sells Bridgehampton home for $45M
A photo illustration of One John Street (left) and 79 Second Place (right) in Brooklyn (Douglas Elliman, Front Inc., Getty Images)
Brooklyn’s top deal last week? Just $6M
Brooklyn’s top deal last week? Just $6M
565 Broome Street, Heat Wave
Manhattan’s luxury market records slowest week since 2020
Manhattan’s luxury market records slowest week since 2020
Hilton Head (Illustration by The Real Deal with Getty Images)
The new normal: $1M price tags in Hilton Head
The new normal: $1M price tags in Hilton Head
arrow_forward_ios

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

Loading...