Luxury Insights

October 'Wealth Report' Now Available

The October 2011 Wealth Report Newsletter is now available for Members.

In this month's issue:

• Luxury Retailers Again Show Strength In September
  Despite another 10% drop in the S&P 500 stock index, high-end retailers post increases in monthly comparable sales nearly double the growth seen in the overall retail universe in August. 
• WealthSurvey: The State of the Luxury Industry -A Global Comparison of Consumers in Top Markets
  Luxury spending surge picks up strength in China even as wealthy consumers report plans to throttle back on purchases in Europe, Japan and the U.S. 

There is some really interesting data on the attitudes of the wealthy in China.  Here's a peek:

 Nearly four out of five (78%) wealthy Chinese consumers say that luxury goods and services are more important in today's economy, although the reverse is true in the U.S. where 80% of wealthy shoppers say that luxury has become less important. 

Members can access this report and an archive of past reports on our website (login required). 

The report is produced by the New York based Luxury Institute, a uniquely impartial, independent and objective ratings and research organization that is the global voice of the high net-worth consumer. 

America's Most Expensive Zip Codes

Forbes has published a list of America's Most Expensive Zip Codes.  It uses the same data set as our ILHM National Luxury Market Report but provides a different view -- more of a short term peek at the market by zip code--but it is fun nonetheless.  Kind of like a billionaire list for neighborhoods...

If you enjoy "house porn" check out their What $1 Million Buys In America's Most Expensive Zip Codes and Homes In The 50 Most Expensive Zip Codes articles too.

Top 10 streets with jaw-dropping home prices

Despite the global economic downturn, there are still markets where residential real estate prices are in the stratosphere.  Wonder where the most expensive residential real estate in the world can be found?  

Here’s the list of the ten priciest streets in the world, according to a post on the Overseas Property Mall blog.  

1. Severn St., Hong Kong, China:  
   $78,200 per square foot
2. Kensington Palace Gardens, London, England:  
   $76,600 per square foot
3. Avenue Princess Grace, Monte-Carlo, Monaco:  
   $69,700 per square foot
4. Chemin de Saint-Hospice, Saint-Jean-Cap-Ferrat, France:  
   $62,700 per square foot
5. Fifth Avenue, New York City, United States of America:  
   $62,700 per square foot
6. Quai Anatole, Paris, France:
   $44,600 per square foot 
7. Rue Bellot, Geneva, Switzerland:  
   $43,000 per square foot
8. Via Romazzino, Porto Cervo, Sardinia, Italy:  
   $23,700 per square foot
9. Wolseley Road, Point Piper, Sydney, Australia:  
   $20,900 per square foot
10. Ostozhenka, Moscow, Russia:  
    $18,000 per square foot

It might be interesting to see if you can figure out the most expensive street in your market and do your own blog post, press release, or newsletter article comparing your market with the world’s most expensive.  

Wealth Survey: Why the Rich ARE Buying

Here's another peek at some of the results of the Wealth Survey: Real Estate and Lifestyle.  See our previous post for more details. 

Here are the top reasons given by affluent Americans who ARE planning a real estate purchase this year.  

 
Are your marketing pieces and messaging highlighting these opportunities?  They should be!  

Wealth Survey: Why the Rich Are NOT Buying

Here's another peek at some of the results of the Wealth Survey: Real Estate and Lifestyle.  See our previous post for more details. 

Here are the top reasons given by affluent Americans who were NOT planning a real estate purchase this year.  

Do you have scripts to overcome these common concerns and objections?  Are you addressing these issues in your market update reports?  You should be!

Barron's: Urban Luxury Homes Are Making a Comeback

Barron's reports:

The market for luxury goods is in full-fledged revival mode, and that includes high-end city real estate -- apartments and townhouses in the $5 million-plus range. After plunging 30% from peak to trough, luxury-home prices in many big urban markets are back on the rise...

Even in many markets where prices are still down, we're seeing increased sales activity, fewer price decreases, price strenght relative to inventory levles, shorter days-on-market, and other signs of the relative health of the luxury segment.  

Of course you know this if you participated in our recent How's the (Luxury) Market webinar.  You'll find other hints as to how various markets are doing in our ILHM National Luxury Market Report.

The economy is a mess and we're nowhere near being "out of the woods" yet, but when it comes to real estate the luxury market is the about the only bright spot.

How's the (luxury) market?

The news for luxury home builder Toll Brothers was good this morning as they announced a 54% increase in profits for the third quarter.  

As one of the pundints on this radio report notes, "Toll Brothers has a leg up because luxury properties don't compete with homes in the low end of the market, which has been hobbled by foreclosures."  

Does this jibe with what you're seeing in your market?  

For a discussion about what's happening in luxury markets around the country,  join us on our How's the (Luxury) Market Webinar, Thursday, September 1st at 1:00 EDT (that's 10:00 Pacific, noon Central time).  

Panelists on the webinar will be:

Scott Sambucci
Chief Operating Officer
 Altos Research 

Jon Sterling
Director of Marketing
Altos Research

Laurie Moore-Moore
Founder & CEO
The Institute for Luxury Home Marketing

This webinar is open to members and non-members alike.  Register now.

NYT: Even Marked Up, Luxury Goods Fly Off Shelves

Nordstrom has a waiting list for a Chanel sequined tweed coat with a $9,010 price. Neiman Marcus has sold out in almost every size of Christian Louboutin “Bianca” platform pumps, at $775 a pair. Mercedes-Benz said it sold more cars last month in the United States than it had in any July in five years.

New York Times: Even Marked Up, Luxury Goods Fly Off Shelves

Luxury Market Heating Up With the Summer?

Some of the recent headlines from around the U.S. suggest that the luxury segment (which has been the untold good "news story" throughout this downturn) continues to gain momentum...

High Rollers Move Up (UPI) 

Luxury Homes are Moving Faster (UPI)

House Prices Hit Record Highs in Houston (HAR)

Luxury Home Sales on the Rise (Denver Business Journal)

Hamptons Home Prices Climb as Luxury Beachside Properties Attract Buyers (Bloomberg)

According to our ILHM National Market Report the trend for the past few months for the nation's luxury markets in aggregate has been price stability, moderate increases in inventory, declining days on market, a situation of general market stability.

What are YOU seeing in your market?

 

A look at London Luxury

The London luxury market is still hot.  According to a recent study by Knight Frank, June prices for London luxury properties are up 8.1% year-over-year.  The average price was 3.7 million GBP (US $5.9 million).

Here are some recent stories on the London luxury market:

• Bloomberg: Luxury’s Not Enough for London Homebuyers to Outdo Neighbors
• Bloomberg: London Has $34 Billion of Luxury Homes in Development Amid Record Prices
• The Telegraph: Foreign buyers send luxury property values soaring