The Changing Face of the NYC Luxury
Residential Market
Bonnie Stone Sellers, CEO
Christie’s International Real Estate
October 18, 2013
I. Defining the luxury buyer in New York
What is the definition of luxury residential real estate globally?
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
1
Trends in Luxury Apartment Markets
I. 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
2
I. Defining the luxury buyer in New York: Market overview, Q3
Average
price per
square foot:
$1,132
3
Trends in Luxury Apartment Markets
I. Defining the luxury buyer in New York
Trends in luxury apartment markets
Amenities
Services
• Range of common spaces: gyms, pools, spas, theatres, lounges, roof gardens
• Parking and storage
• Hotel-like services: concierge, doorman, housekeeping, catering, fine dining
• Security and privacy
• Flexibility for renovations
Infrastructure
• 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
4
I. Defining the luxury buyer: Who is fueling the trend?
2. Foreigners
1. New Yorkers
•
Primary residence city
•
Growth in job market and
Wall Street successes
5
•
•
Evidenced by strong condo
market performance
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
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
II. NYC in the global context: Luxury Defined Market Report
2012 Christie’s International Real Estate Index
6
II. NYC in the global context: Luxury Defined Market Report
Global Housing
Market Trends
7
In New York
Limited supply
✓
Lifestyle attractions
✓
Luxury housing follows luxury goods
✓
Tax laws
✗
Q3 2013 saw 25% fewer listings than Q3 2012
NY has it all—economic stability, ease of
business, transportation, cultural and lifestyle
amenities
Luxury buyers paid 98.6% of asking prices in
Q3, similar to retail purchases
Although Q1 was impacted, Q3 sales over
$10M increased 75% over Q3 2012
II. NYC in the global context: Luxury inventory days on market
8
II. NYC in the global context: Top real estate re-sales globally
9
II. NYC in the global context: Does NYC have the top US properties?
The Owlwood Estate
Los Angeles, California
$150 million (reportedly)
Copper Beech Farm
Greenwich, Connecticut
$140 million
The River House
Manhattan, New York
$130 million
10
The Crespi / Hicks estate
Dallas, Texas
$135 million