Manhattan Condos Are The New Swiss Bank Accounts For The World's Super-Rich
http://www.businessinsider.com/nyc-r...-buyers-2014-6 |
Financial instability in China, Russia, and Brazil
Will only fuel demand. |
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This tower won't even come on the market until maybe next year, or the year after even. As for who's buying the apartments, keep in mind that not all of the units are in the $90 million dollar range, though those are the numbers that get the towers labeled "billionaire buildings". A recent quote from Vornado concerning the supply of high end units, and the current market... http://www.thestreet.com/story/12940...ranscript.html Vornado Realty Trust (VNO) Earnings Report: Q3 2014 Conference Call 11/04/14 Quote:
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The good thing is that the global economy is weak right now so that will prolong this boom maybe longer than expected, as international investors will see such investments as a good deal. Just as you think things are going down they might go right back up again. I expect Nordstrom Tower will be fine. But there should be concern about a possible glut in the number of sky-high luxury units that ordinarily would only have a limited market. There's a phrase called irrational exuberance. |
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The ranks of the superrich are rapidly growing, and the supply of superluxury apartments in NYC (and London, for that matter) is not that big. It would be pretty silly to argue that the superrich will stop investing in real estate. |
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If that's "weak", I would be interesting in seeing your definition of "strong". |
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There is no "flooding" of expensive apartments; there are fewer units being created right now than at most points in NYC history. If you're arguing "at some point prices will go down", ok, but I think everyone on SSP is aware of the basic rules of economics. But there isn't much product being created relative to historical norms, and the supply of potential buyers is much bigger than at any point in history. Yes, prices will go down one day, and then prices will go up again. We know that already, thanks. |
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One building has been completed on 57th Street. 90% of the units in that one building are not for global billionaires. The supply of superluxury units is almost nothing at this point. Yet you, the only person on earth who still thinks Chicago Spire is magically being built, who is reliably always on the wrong side of a SSP discussion, now wishes we all take your word for it, and believe that you can somehow magically predict the future of global economics and real estate? LOL. No, we won't take your word for it. |
Also, keep in mind that some of these units are bought by more than one owner. Sometimes, several, as a source of investment. This occurred for some One57 Units.
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Definitely not all individuals. |
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It's common sense, unless you think there is an unlimited supply of people who will buy these apartments at these prices, downturn or not. Eventually there will be a saturation point. That's called common sense, unless you live in a bubble somewhere. Quote:
Hate to do it, but you get the big, fat DUH award. These developers aren't stupid, they know when to bring these developments to the market. There will be time for the market to "absorb" some of this new product. |
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(Geez, seems like some people in this thread are getting a little testy.) |
Economics of penthouses aside, what tinges me a bit is that the uber-rich don't actually *live* in these buildings often enough. I won't lie, it's nice to have rich people in a city, they support the arts, buisness, shopping, etc. It's unfortunate these buildings often times don't add much in the way of actual new residents and thus activity.
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Sorry. I'll take the blame for some of that. I personally am disappointed that this building was listed in U/C not long ago. Now it's listed in proposed. I think some of our frustrations may come from that fact. |
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Do you really believe that the city can support 1 Million luxury condo units dropped on the market? Of course not, it's common sense. Now drop that number down, and keep dropping it. It's common sense that there is a limited number of units that the city can absorb at any one time. No one should have to tell you that. Now, in activity more related to this project, I walked along 58th Street yesterday, and both 220 CPS and this site are very busy, while excavation is still going on here, there is also cement in play. It's a forgone conclusion that this will be under "construction" soon. It will be followed by both 111 W. 57th and the Tower Verre, projects also under site prep, with construction imminent. |
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