Global luxury home prices turned negative for the first time since the global financial crisis of 2009 and are expected to continue to drop
Per Business Insider
The prices for global luxury homes have turned negative for the first time since the global financial crisis. The report stretched 46 leading markets and found an annual drop of 0.4% in the first quarter; this was the first negative since 2009.
The study was conducted by Knight Frank, a real estate tracker, which shared its Prime Global Cities Index. This was where they showed a 0.4% annual drop during the first quarter.
During the peak of late 2021, global luxury home prices were reportedly up by 10.1%. The recent drop was still down compared to the 3% increase in Q4 last year.
Knight Frank also gave a list of the ten cities that saw the largest drops since their 2022 peaks. Here they are.
- Wellington - saw a decline of over 20%
- Auckland - saw a decline of around 16%
- Stockholm - saw a decline of almost 14%
- Vancouver - saw a decline of almost 12%
- San Francisco - saw a decline of around 11%
- Seoul - saw a decline of over 10%
- Shenzhen - saw a decline of over 8%
- Frankfurt - saw a decline of over 8%
- Los Angeles - saw a decline of over 4%
- Taipei - saw a decline of around 4%
Knight Frank: "The slowdown in growth has overwhelmingly been driven by sharply higher interest rates following recent tightening in global monetary policy,"
In September, it was reported that luxury home purchases saw a record-breaking drop of 28% as the Bay Area was hit the most. During this time, purchases of non-luxury homes also fell by 19.5% in the last three months ending in August.
In February, it was reported that luxury sales remained unaffected by the rising interest rates. In 2022, luxury sales saw an increase of 22%.
Throughout the year, it was reported that personal luxury goods global sales increased to $381 billion.
See flow at unusualwhales.com/flow.
Other News:
- Luxury-Home Purchases Drop by a Record-Breaking 28% as Bay Area Hit the Most
- Luxury sales remain unaffected by rising interest rates, increasing by 22% in 2022
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