Speaker 1: These sees Bloomberg Business Week with Carol Messer and Tim
Speaker 1: Stenovic on Bloomberg Radio. So a story in the Bloomberg
Speaker 1: that caught my attention. It noted how we have seen
Speaker 1: about three point eight billion in net outflows from global
Speaker 1: real estate ETFs in the past year. That includes almost
Speaker 1: four hundred and seventy million dollars in the past week alone.
Speaker 1: Funds focused on the US and Europe, across a range
Speaker 1: of real estate investing styles all saw outflows. Meantime, last month,
Speaker 1: you might recall how Bloomberg News reported on how we
Speaker 1: are seeing a shift when it comes to the most
Speaker 1: expensive areas to buy a home in the US, shifting
Speaker 1: increasingly from New York City to Florida big times. So
Speaker 1: we wanted to get that big, bold perspective and with
Speaker 1: what she is seeing when it comes to global residential
Speaker 1: real estate with us. As Bonnie stone Seller, she's the
Speaker 1: co founder and chair of Forbes Global Properties. She joins
Speaker 1: us via zoom from Jupiter, Florida. Bonnie, nice to have
Speaker 1: you here on Bloomberg. How are you hi, Carol, So
Speaker 1: nice to be here. Thank you well. Tell us about
Speaker 1: your firm. First of all, just at the tone in
Speaker 1: terms of you guys are a consortum of real estate firms,
Speaker 1: right we are. We're a global platform and a membership
Speaker 1: network of elite brokerages around the world that showcase and
Speaker 1: sell the finest properties and homes around the world. We
Speaker 1: have about thirteen thousand member agents. We're in twenty two countries,
Speaker 1: four hundred forty locations, and you get and you tend
Speaker 1: to be high end right, two million plus properties. So
Speaker 1: that's what you're dealing with. Tell me what you, Bonnie,
Speaker 1: are seeing globally, what's hot, what's not well? To start with,
Speaker 1: what we saw in twenty twenty two, as evidenced in
Speaker 1: our report that we just issued last month, is that
Speaker 1: prices have remained high despite the fact that there's a
Speaker 1: slowdown in the volume of sales. We're seeing a shortage
Speaker 1: of supply and that's both ferring the prices. And it's
Speaker 1: true that there are new places where the top, where
Speaker 1: the top sales are arising. In fact, pomp Beach had
Speaker 1: the highest price sale in twenty twenty two at one
Speaker 1: hundred and seventy three million, So the price is still high.
Speaker 1: Slow down and sales, it makes sense, right if there
Speaker 1: are not enough properties coming out of the market basic
Speaker 1: supplying demand, you're going to see those prices stay high.
Speaker 1: But it's also ultimately because the supplies in there, it's
Speaker 1: going to bring down the volume. Do you see any
Speaker 1: of that changing anytime soon? Well, I mean if you
Speaker 1: just kind of look at the trophy sales in twenty
Speaker 1: twenty two, I think you would say that we wouldn't
Speaker 1: see that changing soon. The top twenty the top twenty
Speaker 1: five sales in twenty twenty two range from seventy three
Speaker 1: million to one hundred seventy three million. These were higher
Speaker 1: prices in many locations than we've ever seen before, and
Speaker 1: many of these are purchased by people where a softer
Speaker 1: economy a higher interest rate will have no effect. Well,
Speaker 1: there's all tell me how those deals are done? Is
Speaker 1: it a stupid question? Is there ash deals or how
Speaker 1: was it done? All cash deals? Yes? It is all cash.
Speaker 1: So who's typically buying that? Well, the billionaires around the world.
Speaker 1: Just read Forbes and you'll see who they are. The
Speaker 1: billionaires around the world. You know, by all of the
Speaker 1: homes this year, the more than fifty percent were in
Speaker 1: the United States. I think partially that's because the international
Speaker 1: buyers are weren't as fluid during COVID as we hope
Speaker 1: they will be in twenty twenty three. Tell me about
Speaker 1: so all right, you said about fifty percent. We're in
Speaker 1: the United States, so that was US buyers buy US properties. Well,
Speaker 1: there are a couple of cities in the world, in
Speaker 1: particular say Miami or Dubai, where there were strong international buyers,
Speaker 1: but yes, mostly US buyers in the United States. And
Speaker 1: just to put a fine point on it, kind of interesting,
Speaker 1: but South Florida had the most top trophies in the
Speaker 1: United States and that was followed by Los Angeles, and
Speaker 1: then it didn't happen until we got to Hong Kong
Speaker 1: that we had an international city in the top three
Speaker 1: of the top sales trophy sales. That's interesting, you know,
Speaker 1: and it mirrors a story that we put out about
Speaker 1: mid February to talked about Miami Star Island and we're
Speaker 1: talking about from Shaquille O'Neill to Rosio Donald very exclusive enclave.
Speaker 1: And yet this is why where you're seeing some of
Speaker 1: the top sales happening in the United States and kind
Speaker 1: of a shift away from still New York very pricey,
Speaker 1: no doubt about it. But you're seeing increasingly Florida as
Speaker 1: you see more of financial professionals and just everybody seemed
Speaker 1: to move down. What is it that's going on in Florida?
Speaker 1: Is it like, what are you seeing in the time
Speaker 1: that you've done this how many years? Is there something
Speaker 1: really distinct going on in Florida right now? Well? I
Speaker 1: wouldn't think. I think there's anything in particular about Florida
Speaker 1: other than the that there were no taxes here. Yeah,
Speaker 1: but that's not new, right right, that's not new. But
Speaker 1: I would suggest that a lot of the amenities that
Speaker 1: the top buyers are looking for happen to be found
Speaker 1: in homes here, and those amenities number one for twenty
Speaker 1: twenty two based on our research, or outdoor space. It
Speaker 1: turns out that people are now investing in entertaining again
Speaker 1: and being with other people, and they want that outdoor
Speaker 1: space and a lot of it with which to interact.
Speaker 1: The second item is being close to amenities that they
Speaker 1: like to spend time with. Vacation where you live and
Speaker 1: the beach in Florida is a strong factor as well. Bonnie,
Speaker 1: tell me what other global cities are pretty hot at
Speaker 1: this point? Yeah, So I mentioned South Florida, and that
Speaker 1: was followed by Los Angeles and the third being Hong Kong.
Speaker 1: But other important cities where we're seeing a lot of
Speaker 1: top sales are always New York is in the list,
Speaker 1: Always London is in the list. And Dubai has crept
Speaker 1: up this year. In fact, Dubai has broken every record
Speaker 1: that it's ever had this year. Who's buying? Who's buying
Speaker 1: in Dubai? Is it again domestic buyers or Middle Eastern
Speaker 1: buyers or others. I'm going to say others. A lot
Speaker 1: of the turmoil in the world has sent people to Dubai.
Speaker 1: Interesting in terms of non US buyers. You know, with
Speaker 1: the Russian war in Ukraine, we've talked a lot about
Speaker 1: Russian oligarchs over the last year. With uncertainty about the
Speaker 1: Chinese economy, they came out with a new growth forecast.
Speaker 1: It's disappointing. You know, we've talked about Asian buyers a
Speaker 1: lot over the last year. What can you tell us
Speaker 1: about buyers from Asia buyers from Russia. I would say
Speaker 1: that there's been a slowdown because of COVID of all
Speaker 1: the international buyers. And also think about this, the dollar
Speaker 1: has been so strong that international buyers have been a
Speaker 1: little bit off put by how much more expensive everything is.
Speaker 1: But we're hoping to see a change in twenty twenty three,
Speaker 1: as we're seeing say in New York and in Miami
Speaker 1: and other places, the international buyer and Australia, for example,
Speaker 1: the international buyers are beginning to come back. And just
Speaker 1: quickly got fifteen seconds. No slowing down. The trends that
Speaker 1: you're seeing are continuing here in twenty twenty three. No
Speaker 1: slowing down in prices, definitely continued slowdown in volume of sales. Okay,
Speaker 1: good to know because you did talk about this supply
Speaker 1: demand being out of balance there, Bonnie, thank you so much.
Speaker 1: Great conversation, Bonnie stone Seller. She's co founder in shair
Speaker 1: of Forbes Global Properties. As we said, a consortium of
Speaker 1: real estate firms, global real estate firms with a great
Speaker 1: vantage point at what's going on in global real estate,
Speaker 1: especially as she said, two million plus. But you're talking
Speaker 1: about some pretty high end properties. You are listening in
Speaker 1: watching Bloomberg Business Week. I'm Carol Masser, and this is
Speaker 1: Bloomberg Radio.