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Posts Tagged ‘BRIC buyers’

HEARD DURING A REALLY BUSY SUNDAY IN NEW YORK REAL ESTATE LAND….

Sunday, January 29th, 2012

Posted by Leonard Steinberg on January 29th, 2012

To-day had to be one of the very busiest Sunday’s in New York real estate in a long time…at least since the 2007/2008 peak. I did 12 appointments, a record amount even compared to a busy week-day. The buyers were all 100% serious and focused. And the average price-point of property showed was about $ 4million. Heard during the appointments:

1)   How are all those sharply reduced banker bonuses going to impact the New York luxury real estate market?

2)  Are the BRIC BUYERS buying lots? What percentage of the market do they constitute? (The perception is that it’s 50%…..they are wrong: its closer to 10% at the most in my estimation).

3)  Why are monthlies/taxes all over the map? Who decides who pays more or less?

4)  (To a man with a large, long-haired dog)How can you live with that thing shedding all over your apartment? Answer: “I have a Miele vac!”

5)  Murphy beds are so much more comfortable that pull-out sofa’s for guests, although a too-comfortable houseguest can become an extended stay housepest…. scratchy sheets could fix that problem.

6)  Quartzite is much more durable/scratch resistent that marble, granite, limestone or stainless steel for countertops.

7)  Just-finished, empty white-walled apartments look sad and bare compared to furnished or staged apartments.

8) A super-unfriendly doorman sending prospective buyers away (Owners in building take note!).

GDP GROWS 2.8% IN FOURTH QUARTER 2011: UP 1.1% FROM THIRD QUARTER

Friday, January 27th, 2012

Posted by Leonard Steinberg on January 27th, 2012

GDP figures for the fourth quarter of 2011 were announced this morning and fell just slightly shy of estimates, although they were up 1.1% over the GDP of the third quarter. Consumer spending rose 2%: The great news was that housing investment rose significantly more than the 1% estimates by over 10%.

In Davos this week, the consensus is that we are entering TIGHTROPE TIMES where many different elements of the economy will have to be balanced and addressed simultaneously to work our way out of the global economic mess: this will involve a combination of writing down debts, defaults, printing money, policy changes, austerity measures, spending measures…..in short we are looking to at least 10 years to clean things up. The good news is that there is a global awareness of the big problems we are dealing with and that is good for markets….including real estate markets.

The overall consensus amongst hedge funds and investors is even greater diversification, with a lesser focus on equities. This is where real estate comes in. Gold and real estate are strong hedges against inflation and with consistent talk about printing money, we can be certain inflation is here to stay for a while, even though it may be somewhat more contained than the Ron Paul’s of the world say.

In the New York luxury real estate market, we are definitely seeing a spurt in investment buyers, and unlike the roaring 2000′s, now the investor is more interested in the long term as opposed to the short term fliper. That is always good for markets. I see the growth of Chinese (and other BRIC)buyers in New York as it appears more and more likely that housing bubbles could be emerging in those over-heated economies.

THE NEW YORK “BRIC BUYER”: IS BRIC THE NEW EURO?

Thursday, January 12th, 2012

Posted by Leonard Steinberg on January 12th, 2012

To-day revealed that a single Chinese buyer has gone to contract on FOUR apartments at One 57, the Extell developed tower rising on 57th Street between 6th and 7th Avenues with average pricing starting in the $ 5,000/sf range. Another Russian buyer was also identified.  These BRIC buyers may make this building the BRIC TOWER of New York, the kind of building that attracts foreign buyers wanting a spectacular views apartment in an A-grade full services high security building.