Wishing you and your family a wonderful new year of health,personal growth & happiness, and prosperity.
As we wrap up 2019 in a buyers market, and head into 2020, I’d like to share insights from a recent Bloomberg and Knight Frank report about the real estate market.
Rich homebuyers laid low in 2019 as economic uncertainties turned global cities into risky propositions.
But don't be surprised next year to spot the world's wealthiest people beginning to spend money again as home prices in relatively stable economic areas continue to sink into bargain territory.
In a few cities, prices are even set to rise, according to global property consultancy Knight Frank.
New York's Still a Buyer's Market
New York City prices will fall 3% next year, a continuation of this year's trend. (In the third quarter of 2019, prices were down 4.4% from the same period the previous year, according to Knight Frank.) To sell all the newly built condos in Manhattan at the current sales pace, it would take nine years. And the uncertainty of the presidential election will likely keep buyers on the sidelines, according to Jonathan Miller, president of appraiser Miller Samuel Inc.
Without Foreigners, Vancouver's Stuck, Too
Sellers of pricey properties in Vancouver next year will likely still be feeling the hangover from the drawback of Chinese buyers and foreign buyer tax measures that were introduced in 2016 to cool runaway prices. Luxury values in the city will fall 5% next year, according to Knight Frank's forecast.
Hong Kong Will Deflate
The political unrest in Hong Kong has hurt the luxury market, but it's still unlikely to crash in 2020, according to Knight Frank, which projects a 2% drop for luxury prices next year.
Philip White, president, and chief executive officer of Sotheby's International Realty, says buyers are putting purchases on hold while they watch to see what happens with the pro-democracy protests. In the meantime, they're starting to look for opportunities elsewhere in cities such as in Vancouver, Los Angeles, San Francisco, and London.
Miami Will Have a Comeback
Miami's high-end condo market, on the other hand, is poised for something of a comeback in 2020, helped by President Trump's tax overhaul, which capped federal deductions on state and local taxes, according to Knight Frank.
While South Americans pulled away in recent years as the strengthening dollar added to the cost of buying in the U.S., domestic buyers are making up for it: Florida, which has no income tax, is drawing wealthy buyers from high-tax states like New York and New Jersey. Those buyers will push up Miami high-end prices by 5% in 2020, Knight Frank says.
Los Angeles's Bright Spot Is in the $2 Million-$10 Million Range
Los Angeles's market, from Beverly Hills to Bel Air, will show moderate price increases in 2020–amounting to about 2%. It might have been higher but for a pullback of foreign buyers, particularly Chinese who face restrictions on moving money abroad. That's tended to weaken the highest end of the market.
California's wildfires, including one in 2018 that tore through Malibu, have also hurt by pushing up the cost of insurance, according to Sotheby's White. Demand has been particularly weak for properties above $10 million. Homes priced below $10 million have a more bullish outlook, according to Knight Frank.
Central London Will Have Modest Success Across the Board
Central London, where prices fell 3% in the 12 months through November, will stabilize slightly next year as the fate of Brexit becomes clearer, says Tom Bill, Knight Frank's head of London residential research. Prices are likely to rise by about 1% next year, according to Knight Frank's research, now that Conservatives have won in a landslide.
"Once the Brexit deal is completed, we forecast rising momentum across all markets, with price growth reflecting this from 2021 onwards," the company's 2020 forecast report says.
"Next year we could see the disorderly Brexit risk recede," he says. "If that is the case, there's an awful lot of pent-up capital ready to buy in London, and that will translate into higher levels of activity.”
Once again, wishing you a fantastic 2020 and looking forward to continued success together.
IN THE NEWS
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Sterling Building on Lincoln Road scores hotel approval
Sam Herzberg’s proposal to add a hotel to the 91-year-old Sterling Building on Lincoln Road cleared another hurdle.
The Miami Beach Planning Board last week approved the 144-room project by a 6-1 vote. The hotel is one of two currently in the planning stages for the popular pedestrian mall. City leaders and Lincoln Road business owners say the hotels will attract more visitors and supplement the new convention center hotel that will be built couple of blocks north of the Sterling Building.
Under Herzberg’s proposal, a hotel would be built on top of the Sterling Building near the back of the property facing Lincoln Lane. The Sterling’s ground floor retail is home to Books & Books and a Penguin clothing store, and features a courtyard the bookstore uses as an outdoor seating area.
Turnberry Ocean Colony sets for ultra-luxury condo living in Southeast FL. Located directly on the Atlantic Ocean in this is the most prestigious address in Sunny Isles Beach. Direct ocean views from every room provide stunning vistas for as far as the eyes can see. At this oceanfront oasis, a plethora of residence only amenities are yours to enjoy.
BAL HARBOUR VILLAGE
160 BAL CROSS DRIVE
BAL HARBOUR, FL 33154
5BD / 4.5BA | 3,085 SF | 2 CAR GARAGE
SWIMMING POOL | OFFERED AT $2,900,000
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When it comes to Miami restaurants, Mandolin Aegean Bistro has long reigned as the smart, pretty popular girl everyone wants to hang out with and be like. But there’s a new Mediterranean spot in town, and she’s every bit as effortlessly stylish and charming, with a humble, veg-forward menu whose character shines through in thoughtful details and simple, good ingredients. Mama Joon is a minimalistic, modern-rustic restaurant and bar residing in the newly opened Life House Hotel Collins Park (the NYC-based Life House brand opened its first three “locally rooted lifestyle hotels” in Miami over the last year and has four others on the way including in Nantucket and Denver).
The building towers 56 stories and offers 308 units
The developers received the temporary certificate of occupancy and started closings in early December
Residences range from 2,700 to 6,000 square feet
Units at Armani/Casa range between $2.9 to $17 million
The tower has presold 270 of 308 units in tower
MIAMI JANUARY 2020 CALENDAR OF EVENTS
South Beach Jazz Festival
Jan 3rd - 5th
Miami Beach Antique Show
Jan 4th - 8th
Jan 5th - 12th
Jan 9th - 23rd
Art Deco Weekend
Jan 17th - 19th
Beaux Arts Festival of Art
Jan 18th - 19th
Series & Festival
Jan 19th - 25th
Splendor in the Garden
Festival at Fairchild
Jan 25th - 26th
"Working with Joelle was an absolute pleasure. We bought and sold one unit in six months for a substantial gain, Then repurchase a newer better "Off the Market" unit. She is tenacious and honest and has the utmost integrity. The key is to trust their ways and it will all come together. She knows the market well and is "in the know" of deals happening. The people that make up this business are hard working and accurate. I chose Joelle for all these reasons and is my realtor I will continue to use in the future."