In the market for a luxury home? 2019 could be your year

Foreign buyers, especially from China, have already pulled back

TRD LOS ANGELES /
Jan.January 12, 2019 04:00 PM
(Credit: iStock)

The holiday sale season may be behind us, but those shopping for a high-end home in 2019 may have a flurry of discounts still to come.

Sellers of luxury housing in a variety of major cities will have to offer price reductions in order to get their properties off the market as supply continues to mount, Bloomberg reported.

Home prices in Hong Kong could drop as much as 10 percent in 2019, according to data from Newmark Knight Frank. Meanwhile, in London, the effects are already starting to show. The price of homes sold fell 0.7 year over year in September, according to the Office for National Statistics. Much of the slowdown there is due to its sky-high asking prices and uncertainty over Brexit.

In the American luxury market — defined as $3,000 per square foot or higher in this case — “there’s been a clear slowdown,” Jon Woloshin of UBS Global Wealth Management told Bloomberg. In part, the report attributes that to rising interest rates and a strong dollar. The result is inventory piling up across the country.

Oversupply could be especially pronounced in New York, where an estimated 8,000 new units are expected to hit by the end of 2019, according to Jonathan Miller of Miller Samuel. Out of those 8,000 units, only a quarter are expected to sell. [Bloomberg] – Natalie Hoberman


Related Articles

arrow_forward_ios
Actor Charlie Sheen and his mansion at 14003 Aubrey Road in Mulholland Estates (Credit: Getty Images and Realtor.com via LAT)

Charlie Sheen takes a loss on Mulholland Estates party pad

Charlie Sheen takes a loss on Mulholland Estates party pad
 The top five Los Angeles home sales combined to net $536 million

These were the 5 biggest resi deals in LA in 2019

These were the 5 biggest resi deals in LA in 2019
Four homes have been bought for a combined $400 million recently in L.A. (Credit: iStock, Wikipedia, and Westside Estate Agency)

The $100M club: LA’s priciest mansions are having a moment

The $100M club: LA’s priciest mansions are having a moment
Ramtin Ray Nosrati and a rendering of a cannabis lounge at one of his properties (credit: Huntington Estate Properties)

Agents and developers embrace high society cannabis culture

Agents and developers embrace high society cannabis culture
A 24,000-square-foot home in Beverly Hills Post Office

Luxury market rebounds in some LA submarkets, while median home sales hit record

Luxury market rebounds in some LA submarkets, while median home sales hit record
Malibu Real Estate Investments principals Bedros Oruncakiel and Kirkor Suri

Malibu spec mansion lists amid softening luxury market

Malibu spec mansion lists amid softening luxury market
Chandler Parsons and his property on Stone Canyon Road (Credit: Getty Images)

Durant wants out of Malibu, and now Chandler Parsons is listing his Bel Air mansion

Durant wants out of Malibu, and now Chandler Parsons is listing his Bel Air mansion
CoreLogic's Andrew LePage and Orange County (Credit: Wikipedia)

SoCal housing market shows signs of life, with a caveat: report

SoCal housing market shows signs of life, with a caveat: report
arrow_forward_ios

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

Loading...