Putting their money where their hearts are

Slouching toward 740 Park

Slouching towards 740 Park

Luxury condo prices soar in New York

The median sale price for new luxury homes in Manhattan jumped 72 percent — to $7.85 million — in the last year, up from a mere $4.564 million in the last quarter of 2012.

Real estate experts say the trend will continue because the economy has rebounded, people are more willing to take the plunge now and luxury buyers are bidding up the market.

“Even though the prices have risen, they expect them to rise even more. They are very confident,” said Dottie Herman, president and CEO of Douglas Elliman. “The high-end buyers are the ones who really follow the market. They are real-estate junkies.”

And the high-end niche is not just rich foreigners.

“Now a lot of New Yorkers who live and grew up in co-ops are looking at new luxury condos,” said Diane Ramirez, CEO of Halstead Property.

“In the 1980s, the luxury market was about studios, and one- and two-bedrooms,” she said. “Today the new developments going up have two to five bedrooms and more.”

Corcoran says Manhattan homes listed for $100 million are now a “new market reality.” But the other boroughs also are seeing price booms.

Warburg Realty said prices jumped 20 percent in parts of Brooklyn in 2013 — and a couple of town houses in Long Island City, Queens sold for more than $2 million.

“That high-end buyer is still buying and the numbers will only get higher. Everyone is hot on housing,” said Elliman’s Herman.

The majority of these “real-estate junkies” just voted into office a communist who vows to bring class warfare back to the city. Do these buyers really approve of that and now offer their wealth as a sacrifice or do they, like so many deluded liberals in other failed countries, assume that their foes don’t mean to hurt them? It will be fun to see how this plays out.


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12 responses to “Putting their money where their hearts are

  1. Cos Cobber

    I think you will find more than half of the buyers are foreign or non NYS residents – so local tax policy isn’t on the forefront of their investment decision. In fact, it always seems better than the same buy in Brazil, Columbia, panama, china, Russia, etc. remember, only US residents are taxed on global income!

    • EOSredux

      We spent a week in the city at Christmas. In the hotel and in the restaurants and in the museums and along the avenues, we seemed to be the only English- speaking people around. Russian by far was the language du jour, followed by French. Museums were almost all Asian speaking tourists.

      This morning on one of the talking pol shows, it was noted that deBlasio has chosen to ignore the reason NYC has so many wealthy is that both Giuliani and Bloomberg saw to it that the city was safe and welcoming for billionaires. It is an environment that enourages wealth to come in. The person added that the same environment brings immigrants, some 36% of all NYers are immigrants, and they come hoping to aspire to that deeeeluxe apartment in the sky. deBlasio will drag the city down.

    • housecat

      I was thinking the same thing. We have a couple of BRICs who’ve bought houses in our neighborhood. Never here more than a few weeks of the year, security systems to rival NSA HQ, extremely rude to the neighbors (when they are here), etc. They aren’t all parking their dough in NYC, for sure.

      • EOSredux

        Uh oh, my ignorance is showing, again. What’s a BRIC? Billionaire…..something?

        • Brazil, India, China – supposed to be the new wealth spots, although it’s really citizens of the two kleptocracies, Russia and China, that are the real players over here.

        • Joey

          yes and this is interesting because the only way for a house to be an “investment” (unless they rent it out of course) for a foreigner from the BRICs is if they feel that their money is in danger of confiscation or monetization in the case of a very bad economy. After taxes and up keep they will be very lucky to make any money. The investment is just a place to park their money and perhaps their family if they are not in favor anymore in their own country.

          The trend in NYC has nothing to do with the city government. It is just about emerging markets with unpredictable governments having a lot of money. This did not exist 10 years ago. And for the story about coop owners buying luxury condos. This is just pie in the sky told by another real estate “professional”.

  2. Peg

    I think a lot of it is like Obamacare. So many liberals in NYC – they believe the hype about “progressivity” etc. Yet, as EOS states, wait until people start getting gunned down on the streets because “mean” tougher safety policies are stopped and God knows what else deBlasio wants to put into place. Lefties don’t seem often to be able to appreciate the true effect of their programs until they get smacked up one side and down the other from ’em.

  3. Anonymous

    Manhattan will stay safe, the outer boroughs not so much ….

  4. Anonymous

    most folks paying that kind of dollar don’t even live in the things. it’s a trophy.

    i’m on the board of a nice condo bldg in nyc and review purchase apps. 3/4 of them the past 3-4 yrs are chinese nationals, all cash. and their lawyers are all in queens.

    the chinese govt may own a lot of our country’s debt, but the chinese affluent are taking their wealth outta the country and buying real estate here. why aren’t they buying in china, i wonder?

    • Riverside Dog Walker

      A lot of this is getting cash out of their home country to a safer haven. London is experiencing the same thing with respect to real estate for the same reason. It is safer to own real estate in NYC or London than to park your dough in Cyprus as they have learned. The fact that we are in an asset bubble in these real estate markets helps also.

      Same reason Macau is the leading gambling center in the world. A Chinese ‘businessman’ can pay say the equivalent of USD 1 million to a tour operator for a Macau trip and when he arrives he gets casino chips for the bulk of this money. He plays his game of choice for awhile and then converts the remaining chips to foreign currency which gets deposited in an offshore account, which he can’t do in mainland China. Beautiful, really.

    • Anonymous

      There are limits to the number of properties Chinese can buy in China. Their government cracked down on housing bubbles and places heavy restrictions, even for the rich.

  5. Libertarian Advocate

    Here’s a new campaign slogan Maolloy should run in the Russian frequented strip clubs of Manhattan:Bring your WAD to Connecticut, we’ll get you off….