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Chinese billionaire spends $23.5mm on a condo in Manhattan

Chinese billionaire Liu Yiqian paid $23.5 million for a three-bedroom pad at One57. According to the Wall Street Journal, the billionaire acquired the 4,500-square-foot unit on the 62nd floor for what he called "a good price."

The apartment was originally asking $41 million in 2014 before going through several price drops to its most recent asking price of $25 million.

The luxury real estate market in Manhattan has been soft due to a large supply of new luxury condos all over the city.

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Source: Curbed, October 25 2016

Looking for a good property investment in the US? Williamsburg (in New York City) could be your choice

Williamsburg in Brooklyn is the hipster center of New York City. However, new condo buildings next to the waterfront and where apartments can sell for $1,600 per sq ft indicate that this area has changed significantly over the last 10 years.

The average price of a condo in Williamsburg is now more than $1 million, according to Corcoran (a real estate agency). That price point is almost at similar levels as condos in Manhattan, where condos are selling for about $1.1 millino in the second quarter.

While the main avenue in Williamsburg, Bedford Avenue, is still full of art galleries and boutiques, there are big hotels and chain stores in place of industrial buildings and row houses just a block away from Bedford Avenue. “The era of a gritty hipster hang-out is essentially gone,” says Jonathan Miller, president of real estate appraisal firm Miller Samuel. No district has seen sharper price rises over the past 10 years than Williamsburg, Miller says.

The increase in prices is due to the developers that construct evermore expensive condos. Williamsburg is duly in the midst of another building boom, with hundreds of condos in the pipeline.
In recent months however, home prices have been falling and the supply of new condos could cause trouble for the neighbourhood. The average price of a condo in Williamsburg decreased 13 per cent over the last 12 months, according to a survey from Corcoran.

Much of the new construction is happening alongside the East River waterfront. New buildings include the Oosten, a 216-unit development that occupies a full city block near the river. One-bedroom apartments start at around $1.1 million. The project is 75 per cent sold. Another waterfront project Austin Nicols House with 338 units is under construction a few blocks away, and asking prices for studios to three-bedroom condos range from $535,000 to $3 million.

However, one of the biggest potential challenges facing the new developments could be the New York subway system. The L train — a critical link between Williamsburg and Manhattan — is set to be temporarily shut down for 18 months, beginning in 2019. The city needs to repair damage left over from Hurricane Sandy in 2012. This upcoming halt in service of a critical subway line halt has left some business owners and real estate brokers worried about what will happen to the real estate market in Williamsburg.

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Source: Financial Times, Sep 16 2016

Real Estate agents in New York pass on advice for home buyers in bidding wars

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It is getting tougher to find a home in the suburbs around New York at the moment, with buyers going after all the same homes.

CBS2, a major news agency in New York, had some tips to proceed if you find yourself in a home buying bidding war.

Real estate agents said anyone shopping in the superheated New York suburban home market this season had best be prepared for the bidding war.
“Around here, you can get a listing on Friday, and by Sunday go to multiple bids,” said real estate agent N. Elsas.
Westchester County, a neighbourhood with good schools around, in particular is bidding war territory, with real estate agents setting the bait for multiple would-be buyers. “I find that if you list it a little bit low, you’ll get multiple offers” and spark the war, said real estate agent D. Turner.
One house in Bedford that Turner just sold went to sealed bids from three would-be buyers. Turner cautions people not to hold back when it gets to that point.
“I’ve had buyers call me after the conclusion of the bidding war and saying: ‘Can I go a little higher now? I’ve decided I really want it and I didn’t go high enough,’” Turner said. “Generally, there’s not that opportunity.” Turner said bidders should be bold, but not impulsive. Also, they should know the appraisal value of the property, especially if they are financing the deal as most people do.
“The bank is going to decide what the value is, and if it doesn’t appraise for the contract price, the buyer’s going to have to make up the difference in cash,” Turner said.
The other big items are to be pre-approved for financing before you start, and to have the property inspected before you bid on it if possible. Rye agent Elsas said buyers should try not to be difficult, but it could cost them the house.
“If I’m selling my house, I’m not waiting for somebody to get their mortgage. I’m not waiting for somebody to quibble about this little bit and this little thing in the house,” Elsas said. “We want somebody who’s raring to go, and those are the people who get the houses.”
In short, the advice is to bid high, have your financing pre-approved, know the appraisal, pay for inspections, and be nice but have nerves or steel — or stay home.
Agents said it is also not uncommon for bid winners to have morning-after remorse, realizing the bid was more that they could afford. The bottom line – it’ ain’t easy out there.

Manhattan real estate prices jumped 35% over last 12 months

Based on the latest report of Douglas Elliman, a major brokerage firm in Manhattan, median real estate prices for condo apartments in Manhattan jumped 35.2% over the last 12 months (as of March 31). Average price per square foot for condos increased 34.7% to US$ 2061. The new condo construction market saw an even higher appreciation with a whopping 60% increase in median sale price over the last 12 months.
While the high numbers can be partly explained by the heavy number of closings of luxury apartments, the data shows a strong demand of local New Yorkers and out of town investors.
However, the number of sales have slowed. Though the total number of sales grew 8 percent compared to the same quarter last year, they slipped 3 percent compared to the fourth quarter of 2015. On a year-over-year basis, the number of sales has fallen for the past seven quarters. Meanwhile, listing inventory increased 5 percent over the year.
While the very top of the market — apartments priced at $5 million or more — has slowed, the core market of apartments priced at $1 million to $5 million remains strong.
"What you have is the super-luxury high-end of the market, which started changing a year ago and is clearly slowing," said Jonathan Miller, president of Miller Samuel appraisal firm. "But in the rest of the market, demand is still elevated." And Jonathan Miller also said that overall inventory of resale apartments — which make up the bulk of the market — is about 10 percent below historical norms.

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Source: CNBC and Douglas Elliman, April 1 2016

Manhattan ultra-luxury market slows down

The Manhattan ultra-luxury condo market appears to be slowing down. The luxury real estate market is defined by apartments valued at more than US$ 5 million. Currently, prices are estimated to be 25% down from the peak. There are two major reasons for this trend. The first reason is that over the last few years, many developers have been adding more luxury buildings in the market and as a result, many options are available for those who are looking for the most expensive apartments. Experts indicate that the ultra-luxury market has a major surplus in inventory. The second reason is that economic challenges in foreign markets such as Latin America, Russia, Middle East and China are preventing buyers to continue buying at the same rate.
The result is that many sellers of these prime luxury apartments have to cut their asking price in order to compete with the supply of new constructions units. There is a recent example of a developer who decided to split a US$ 45 million apartment into three apartments instead and sell those three apartment separately. Other developers are also indicating a slower market.
The mainstream market (defined as apartments selling at approximately US$ 1 million) continues to do well. Lack of inventory of apartments in this segment is a challenge for local and foreign buyers.
It has to be seen for how long the softness in this ultra-luxury segment to continue.

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Source: CNBC, March 11 2016 and East-West Property Advisors

Manhattan's condo prices reach records in Q4 of 2015

The median price of a Manhattan apartment has jumped 17.3 percent from the previous year, to $1.15 million, according to a recent Douglas Elliman report. The average price now stands at $1,948,221, a 12 percent rise compared with last year. The average price per square foot is at $1,645 which is a 28.1 percent increase compared with the same period last year.

It does pay off to look a bit more closely at the data. The median price of a brand new construction property was up 15.4 percent to $2,059,411. On the other hand, the median price for resales saw a much more modest jump of 8.1 percent to $960,000. In other words, most of the price increase came from an unusual number of luxury condo sales that closed in the past three months.

Despite those nuances, though, New York buyers of any apartment are in a difficult situation. Banks have been tight with their lending standards during this boom. The tighter rules now make these numbers even more remarkable. In fact, this quarter, “50 percent of the deals were cash,” says Elliman president Dottie Herman, adding that an apartment in Manhattan seems like a better investment than the stock market or a mutual fund.

Inventory did actually finally grow this past quarter but only a small growth.

So is there any bright spot for buyers of New York apartments? Maybe a small one. Corcoran’s report shows the number of contracts signed — which will likely translate to closed sales these first three months — to have fallen by 12 percent. So maybe January will be a little cooler.

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Source: New York Magazine, January 2016

Record high prices in New York City

Prices of apartments in Manhattan have reached new highs in 2015, with the typical price of a co-op apartment or condo apartment exceeding $1 million for the first time, based onThe Wall Street Journal.

The median price of a Manhattan apartment rose to almost $1.1 million, an increase of 13.5% from $965,000 from both the previous quarter and the fourth quarter of 2014, according to an analysis of Department of Finance in New York City.

The median price also set a record: it increased 6.5% and is now $980,000 (compared to $920,000 in 2014).

Sales are also still going strong. There were a total of 12,872 sales in NYC in 2015, compared with 12,608 in 2014, based on sales filed with the local government in New York City through Dec. 21 of each year.

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Source: Economic Policy Journal, December 29 2015.

New York real estate prices reach record high levels

Real estate prices in Manhattan grew between 9.5-12% over the last 12 months, according to new data from several brokerage firms.
New York continues to be an attractive market for both locals and internationals.

Median rent prices in Manhattan reached an all-time-high of $3,339. Brooklyn saw a more gradual rise in median rent of 1.5 percent.

Median home sales also rose, with Manhattan resale prices reaching a record $982,958, which is 6.3 percent higher than 2014. In Brooklyn, the price index climbed 9 percent from the previous year, reaching a record high of $545,139.

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Source: Luxury Daily Oct 30 2015

Manhattan real estate prices increase 14% over last 12 months

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Based on recent real estate reports, New York real estate prices continue an upward trend. The median price for an apartment in Manhattan is now 998,000 USD and the average price is now 1500 USD per square foot.

Based on analysis from East-West Property Advisors, there are several reasons for this upward trend in real estate prices in Manhattan. Manhattan continues to see a high demand for apartments while supply remains limited. This is causing prices to continue their steep increase. Furthermore, the rental vacancy rate is 1% which means that many investors have great options to rent out their apartments at high rent.
While their is new housing coming on the market in Manhattan, these new projects often are luxury projects starting at 2000 USD per square foot. This is much more than the average price in the second hand market and as a result, many buyers in Manhattan are being forced to find their dream home by looking at second hand apartments only.

Most experts expect that prices will continue to go up in the near future as the economy remains strong, job creation is high, supply remains limited and interest rates continue to be low.

See the full article here:
http://www.nydailynews.com/life-style/real-estate/manhattan-real-estate-...

New York real estate prices continue to rise

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The real estate market in New York is still experiencing an upswing. Prices have increased 18.8% over the last 12 months. Main reason is that the new supply is not meeting the high market demand. New York remains a hub for many industries which continues to attract talent.

The full article can be read here:
http://www.nationmultimedia.com/business/Real-estate-prices-in-New-York-...

Source – The Nation, July 29 2015

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