Buyers back away from luxury apartments
Several high-end apartment projects across the Zurich region are either significantly undersubscribed, or have not had enough take-up to warrant the start of construction, real estate figures show.
The trend for exclusive high-rise accommodation, complete with 24-hour concierge, seems to be in decline. Only 45 of the 58 apartments at Löwenbräu Black have been sold, newspaper Tages Anzeiger reported Monday.
The most expensive luxury apartments at the top of the Löwenbräu Black tower have taken so long to be snapped up that developer PSP Swiss Property has been prompted to re-think the space, splitting the penthouse into two smaller apartments instead.
The developers of the Mobimo Tower have adopted a similar strategy. They have increased their initial proposal for 33 large apartments to a greater number of smaller spaces, hoping that these will be easier to sell.
Despite the space reduction, the price of a single apartment in the Mobimo Tower is still estimated at between three and six million francs ($3.3-$6.6 million), according to Tages Anzeiger. In August, Mobimo reported that only two thirds of its properties had been purchased.
Peach Property, another major property developer which owns a prize section of real estate on Lake Zurich, has had to postpone construction several times because the take-up of the proposed apartments has been so low that the company simply could not justify launching the construction phase.
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