November 18, 2019
New York City is bearing the brunt of a slowdown in luxury residential sales more than most global cities, according to U.K.-based Knight Frank. With a 4.4% year-over-year decline and 1.4% quarterly drop as of the third quarter, it’s only three rungs up from bottom-ranked Seoul.
“A year ago, we announced the start of ‘the Great Moderation’ in prime residential markets,” Knight Frank researchers wrote. “Twelve months on, the slowdown has gathered pace.”
The firm’s Prime Global Cities Index cites a 1.1% gain for all 45 cities in the index Y-O-Y through Q3, down from 3.4% in 2018 and 4.2% in 2017. “Despite a longer-than-expected period of loose monetary policy and steady wealth creation, luxury sales volumes are at their weakest for several years in many first-tier global cities,” according to Knight Frank.
The firm points to slower economic growth and “escalating headwinds” as influencing buyer sentiment.
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