The Global Luxury Real Estate Market Lost A Bit Of Sheen In 2015

Calling it the “return of realism,” Dan Conn, chief executive of Christie’s International Real Estate, indicated that the global luxury market saw a 2015 decline in response to unsettled financial markets, as affluent buyers searched for less expensive properties. However, he also believes the slower growth should be seen as a sign of stability instead of weakness.

In a sector where average home prices start at $2.2 million, 2015 sales increased at only 8 percent, just half of the pace of 2014. Luxury properties were selling for 19 percent below asking price in 2015, compared to just 14 percent below in 2014.

Yet while the global luxury market cools, one interesting trend is developing. Affluent buyers are scooping up luxury properties in non-traditional markets like Portland, Oregon and Auckland, New Zealand, where a jump in sales of luxury properties of 40 percent and 63 percent growth, respectively, was seen.

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