Slashing Property Prices for the Luxury Crowd

March 16, 2015 — You might say it was fun while it lasted. The luxury market was on fire, and developers were testing those one percent waters to see how high prices could climb. As 2014 drew to a close, however, experts warned that the bubble would burst and a slowdown would begin. Sure enough, old man winter did manage to slow everything down. And now, as the Daily News reports, it looks like developers are getting "real about real-estate prices." That's right. Developers are slashing prices by as much as 25 percent. That sure sounds like a lot, but of course when you're not a gazillionaire, there simply isn't much difference between $40 million and $29.95 million or between $110 million and $82 million. It's interesting to see, however, that even the super rich, who arguably according to many have money to burn, can spot when something is overpriced. You can't blame the developers for trying their luck, though. The Daily News calls it "the real-estate equivalent of throwing everything against the wall and seeing what sticks" and quotes one developer as saying, "at the beginning of the sales process, you have nothing to lose when you list your penthouse at a pie-in-the-sky price." You never know when someone rich enough is going to bite.