This is the new reality in the luxury residential market: Deeper price cuts, fewer sales and listings that are lingering ever longer.
From Los Angeles to New York and Chicago to Miami, luxury home market has been in the grips of a prolonged slowdown. Experts say that’s due in part to the recent pullback of foreign buyers, especially following increased capital controls from China. But stock market uncertainties, “aspirational” pricing and a glut of supply has also played a roll.
Still, there have been several sky-high home sales this year, including the $238 million that hedge funder Ken Griffin paid for a Manhattan mansion in January and the $100 million WhatsApp co-founder Jan Koum dropped on a Malibu compound last month, the overall slide in the luxury market continues.
But with a downshift underway, most professionals are looking to adapt in any way they can in order to keep the deal volumes up. The increasing amount of money developers are spending on amenities (some calling them gimmicks) speaks volunes to the challenges of the market. Extras like luxury concierges, pet care, private tutoring and urban farming have all been offered to attract buyers. But will it work?
Original article published August 2018 c/o TheRealDeal.com