Israel’s luxury real estate market turns down; Dubai luxury developer admits to 60% default rate; the International Herald Tribune moves to the New York Times; Telluride real estate sales down 46%; another golf community goes under; a Boston firm closes on $43.5 million deal in St Paul; Luxury Yacht Repossesions Rising and Long Islanders cut back on luxuries.
Haaretz reports that luxury property prices in the Sharon have fallen as much as 25% in a few months.
Not long ago the Sharon region, running from north Tel Aviv to north of Hadera, had been a gold mine for property investors. No more: real estate prices in the rural parts of the Sharon have plunged, losing as much as a quarter of their value or more in a matter of months as the global economic crisis reaches shore. Luxury houses have been hit the worst but even rental prices are slumping together with consumer confidence. Story
Deyaar, one of Dubai’s largest luxury real estate developers have admitted to a 60% default rate on unfinished off plan properties and have cut prices by up to 30% in an effort to reduce the rate. Deyaar price cuts. Although, if they are admitting to this high a rate, it is probably higher.
One of our regular reads, “Raising the Roof,” has migrated from the International Herald Tribune to The New York Times as part of the ongoing “consolidation,” in the online newspaper industry. We wish Kevin well in his new home and hope that there is not too much redecorating needed. New Address – Raising the Roof at the New York Times.
Yet another luxury golfing community goes under, securing just one bid at auction – from the lender, Atlanta-based SunTrust.
SunTrust was the only — and therefore highest — bidder in an auction in the Wake courthouse. The Atlanta lender, which financed the 934-acre project, offered $32.24 million in an effort to capture the balance of at least $39 million borrowed by Raleigh developer Creedmoor Partners. Story
The Denver Post reports that luxury real estate sales in Telluride were all down substantially in 2008.
Telluride’s real estate market saw the smallest number of sales in 20 years and the lowest dollar volume in six years, according to a report by George Harvey Jr. of Telluride Properties. The number of sales dropped to 339 last year, down 46 percent from the previous year. Sales volume was $343.3 million, down 55 percent from 2007. Story.
Similar falls were witnessed in Vail, Aspen and Breckenridge, which would go some way to explaining the recent demise of Sotheby’s International Realty in Aspen.
A Boston firm has purchased a 344-unit apartment complex in St. Paul, Minneapolis, closing one of the biggest real estate deals this year. St Paul Business Journal. Good to see some activity in the market, but at the other end of the scale, luxury yachts are being repossessed at an alarming rate in Florida and Newsday reports that luxury retailers are hit as wealthy LIers (Long Islanders) cut back too.
There was a time not long ago when Marina Stern of Great Neck would buy a $1,500 shirt without thinking twice. She can still afford to, she said, but now, she’s more likely to go for the one costing $500. “Now I’m looking for the price,” she said, pausing outside the Americana Manhasset mall recently to explain why she wasn’t shopping as much. “One, it doesn’t seem right when the whole country is in recession, and two, you don’t know what’s going to be tomorrow, so store the cash.” Story
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Unexpected Jump in Home Sales in February !!!
Here’s an unexpecteded headline, from the NY Times, no less.
http://www.nytimes.com/2009/03/24/business/24econ.html?hp
Obviously it is the bottom of the market that might be “bottoming out”, with foreclosures and panic sales.
The author agrees with you that NYC luxury market is likely to fall further. Yet, at this point, I thought the headline was worth pointing out
Recovery has to start somewhere…
Unexpected? After the government dumped Trillions of dollars in and following one of the worst months in memory? I am surprised it was only 5.1% – surely we could have managed better than that – don’t you think? Will you be buying a few properties now?
One swallow does not a summer make – and it is not as though the NYT has a vested interest in re inflating the bubble. They have not lost any advertising revenue. They have not gone broke.
Get real. We are way off any sort of recovery and headlines like this only make matters worse. Let’s see a genuine strength in the fundamentals please.