A “softening” luxury real estate market and global political uncertainty is clearly apparent, however it is still a buyer’s market for the ultra-wealthy, according to a recent survey. “High end homes prices are clearly losing altitude all around the country,” CNBC reported. In partnership with the YouGov Affluent Perspective, Luxury Portfolio International surveyed the top echelon of consumers across 12 countries, finding that the majority of those consumers were “cautious but optimistic” in the face of an uncertain and often turbulent world economy.
Those with a networth of over $50 million or more, have swelled. According to Research from Credit Suisse, more than 123,000 individuals are listed in this category. This accounted for a “whopping” 53 percent jump in just five years. CNBC reported that most of them reside in North America, where the rate of growth among the super-rich is double that of Asia and significantly faster than Europe’s.
Although high-end real estate has softened — sales of homes priced above $1 million have tumbled recently, according to recent National Association of Realtors (NAR) figures — high-net worth individuals “feel good about their lives, are confident about their decisions and have a very strong intent to purchase real estate,” the report’s authors wrote. The YouGov survey also found that 25 percent of the wealthy were looking to purchase new property over the next three years, with 18 percent looking to sell.
Outside the U.S., the mood was far more confident: 45 percent of wealthy buyers are looking to purchase real estate with only 23 percent looking to sell, the data showed. The report also showed that “nearly 1 in 4 of the Global Top 1 percent plans to make a real estate purchase in the next three years, with almost as many considering selling as well.”
The YouGov survey is consistent with what Philip White, president and CEO of Sotheby’s International Realty Affiliates, told CNBC in an interview last month. He said high-end real estate was “sort of a mixed bag, and obviously there is some slowing,” but some locations were faring better than others.
Philip White, president and CEO of Sotheby’s International Realty Affiliates, told CNBC in a recent interview.
“Some markets are seeing a slowdown in the high end but some aren’t,” White said, whose company cranked out $80 billion in U.S. sales volume in 2015. “It is sort of a mixed bag and obviously there is some slowing,” he said, even as he cautioned that ultra-high end sales were a much smaller slice of overall real estate turnover in the U.S.