Share

World 'hedge fund capital' mansions left empty as even the rich start downsizing

Homebuyers in the hedge fund haven of Greenwich are favouring smaller properties over the sprawling mansions the US town in Connecticut, New England, is known for.

The average size of single-family homes that sold shrank for a third time, pulling the median price down 17% in the first quarter from a year earlier to $1.69m, appraiser Miller Samuel and brokerage Douglas Elliman Real Estate said in a report on Thursday. Meanwhile, the number of luxury houses on the market jumped 68% to 232.

Too many properties, too little demand

“There’s been a steady shift in the mix,” Jonathan Miller, president of Miller Samuel, said in an interview. “There’s still demand for high-end homes, but nowhere near the density of a decade or so ago. There are too many properties on the market, too many sellers, and Wall Street isn’t the driver of demand it once was.”

In recent years, luxury buyers have got more options in other New York suburbs and Manhattan’s new condo towers. That’s weighed heavily on Greenwich, where sellers aren’t pricing their properties competitively enough, Miller said. Single-family home sales tumbled 25% to 74, the fewest for a first quarter in eight years, according to the report.

Federal tax reform, which capped deductions for state and local levies to $10 000, didn’t help. The average property-tax bill in Fairfield County, including Greenwich, was $10 754 last year - the eighth highest in the country, according to Attom Data Solutions.

Condos - generally smaller, less expensive and closer to transit - are a bright spot. Purchases jumped 33% to 32, with a median price of $681 500, Miller Samuel and Douglas Elliman said.

David Haffenreffer, brokerage manager of Houlihan Lawrence’s Greenwich office, is optimistic. The key spring selling season got started later than usual this year, so the second quarter could show a stronger market, he said.

“We’re seeing a definite pickup in activity,” he said in an interview. “Our agents are wall-to-wall busy with showings, there are negotiations going on and contingent contracts and pending deals going on now.”

We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
18.99
-0.2%
Rand - Pound
24.14
-0.1%
Rand - Euro
20.64
-0.2%
Rand - Aus dollar
12.39
+0.2%
Rand - Yen
0.13
+0.5%
Platinum
911.88
-1.3%
Palladium
1,019.74
-4.3%
Gold
2,159.43
-0.1%
Silver
25.10
+0.2%
Brent Crude
86.89
+1.8%
Top 40
66,252
0.0%
All Share
72,431
0.0%
Resource 10
53,317
0.0%
Industrial 25
100,473
0.0%
Financial 15
16,622
0.0%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders