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
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