Taking advantage of opportunities that have arisen due to the Pandemic – wise business decision? Or taking terrible advantage of somebody else’s crisis?
In business you play the long game. You cannot panic. It does not do to react too fast. However; as a buyer in the luxury property world you are now holding all the cards. As a seller, as large development firms are finding out, you are at the mercy of those buyers.
The property market is in the grip of a once in a century pandemic crisis. Luxury property has changed drastically – people are still fleeing the cities. Buyers checklists have changed – premiums once paid for luxury central city living are now paid for outdoor space, own parking, lack of neighbours.
Foreign buyers are not willing – or not able to visit- countries they aren’t resident in. The lack of wealthy foreign buyers is making a huge impact on the prices in cities like London and New York.
Across both cities developers are cutting prices in order to move the properties. They are throwing in moving fees, adding luxury extras – anything really to tempt the wealthy buyer back to the city. Into properties they were designing and building long before this pandemic hit.
It’s a golden opportunity to buy now. Yes, the biggest window of discount is closing as the vaccines become more real, but experts say the discounts are still huge.
Manhattan Brokers just announced to the press luxury property there was down 30% from pre covid prices.
London is the same as NYC, tho not quite the saving. Prices in prime central London are still down on last year. A mini bounce after lockdown 1 has slowed and prices are flattened for the next few months at least. The end of Stamp Duty holiday may well see the market quieten even more.
Evidence shows that its no longer the central of London leading the uk market, studies show the rest of the uk show stronger prices in the right more rural areas. Its the same story as before – demand is up for large homes with large gardens, not your high price London luxury apartment. Working from home needs to be comfortable after all, strong wifi, and outdoor space are at the top of London buyers lists.
Smart buyers that firmly believe life will soon return to ‘pre covid normal’ think there is a massive opportunity here. Experts in the luxury market agree – this is a once in a lifetime discount. However the market of buyers are split – is it the right thing to do in a time when hundreds of people are still dying of this virus and no guarantees of a ‘normal’ life are 100% certain?