the changing face of the nyc luxury residential market bonnie stone sellers, ceo christies...
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The Changing Face of the NYC Luxury Residential Market
Bonnie Stone Sellers, CEOChristie’s International Real Estate
October 18, 2013
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What is the definition of luxury residential real estate globally?
I. Defining the luxury buyer in New York
Price per Residential Unit in USD, Millions, for the Period of September 2011 – 2012
Source: Affiliate owners from the Christie’s International Real Estate network
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Trends in Luxury Apartment MarketsI. Key NYC market facts
• NYC stock: Co-op and condo housing stock
of 290,000 units, 70% co-op, 30% condo
• Inventory: 4,059 units
• 2013 to date: $13.7 billion to date (9,784 units)
• Q3 sales over $5 million: 111 units
(28 over $10 million)
• Q3 new development sales: 327 units
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I. Defining the luxury buyer in New York: Market overview, Q3
Average price per
square foot: $1,132
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Trends in Luxury Apartment MarketsI. Defining the luxury buyer in New York
Trends in luxury apartment markets
• Flexibility for renovations
• High ceilings
• Apartment finishes to the level of a Five Star hotel
• Family kitchens along with commercial quality kitchens
• Classic apartment layouts and traditional materials such as stone and glass
• Sustainability in MEP systems and high-end technology
Infrastructure
• Range of common spaces: gyms, pools, spas, theatres, lounges, roof gardens
• Parking and storageAmenities
Services• Hotel-like services: concierge, doorman, housekeeping, catering, fine dining
• Security and privacy
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I. Defining the luxury buyer: Who is fueling the trend?
• Primary residence city
• Growth in job market and
Wall Street successes
1. New Yorkers 2. Foreigners
• Evidenced by strong condo
market performance
• NYC trophy real estate a “safe
haven” for wealth
• Buying for their student children
• Second home buyers
• Currency considerations
• Stringent tax laws in their own
countries
3. Millennials
• Attracted by low interest rates
• Familial assistance has boosted
purchasing power
• Strong belief in investment
value
• Affluent young tech executives
pushing up prices in the west
side and downtown areas
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II. NYC in the global context: Luxury Defined Market Report
2012 Christie’s International Real Estate Index
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II. NYC in the global context: Luxury Defined Market Report
✓ Q3 2013 saw 25% fewer listings than Q3 2012Limited supply
Global HousingMarket Trends
In New York
NY has it all—economic stability, ease of
business, transportation, cultural and lifestyle
amenities
Lifestyle attractions
Luxury buyers paid 98.6% of asking prices in
Q3, similar to retail purchases
Luxury housing follows luxury goods
Although Q1 was impacted, Q3 sales over $10M
increased 75% over Q3 2012
Tax laws
✓
✓
✗
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II. NYC in the global context: Luxury inventory days on market
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II. NYC in the global context: Top real estate re-sales globally
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II. NYC in the global context: Does NYC have the top US properties?
Copper Beech FarmGreenwich, Connecticut$140 million
The River HouseManhattan, New York
$130 millionThe Crespi / Hicks estateDallas, Texas$135 million
The Owlwood EstateLos Angeles, California$150 million (reportedly)