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The Changing Face of the NYC Luxury Residential Market

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? .

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The Changing Face of the NYC Luxury Residential Market

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  1. The Changing Face of the NYC Luxury Residential Market Bonnie Stone Sellers, CEOChristie’s International Real Estate October 18, 2013

  2. 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

  3. 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

  4. I. Defining the luxury buyer in New York: Market overview, Q3 Average price per square foot: $1,132

  5. Trends in Luxury Apartment Markets I. Defining the luxury buyer in New York • Trends in luxury apartment markets • Range of common spaces: gyms, pools, spas, theatres, lounges, roof gardens • Parking and storage Amenities • Hotel-like services: concierge, doorman, housekeeping, catering, fine dining • Security and privacy Services • Flexibility for renovations • High ceilings • Apartment finishes to the level of a Five Star hotel • Family kitchens along with commercial quality kitchens • Classic apartment layoutsand traditional materials such as stone and glass • Sustainability in MEP systems and high-end technology Infrastructure

  6. I. Defining the luxury buyer: Who is fueling the trend? 2. Foreigners 1. New Yorkers 3. Millennials • 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 • 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 • Primary residence city • Growth in job market and Wall Street successes

  7. II. NYC in the global context: Luxury Defined Market Report 2012 Christie’s International Real Estate Index

  8. II. NYC in the global context: Luxury Defined Market Report Global Housing Market Trends In New York • ✓ • Limited supply • Q3 2013 saw 25% fewer listings than Q3 2012 • ✓ • Lifestyle attractions • NY has it all—economic stability, ease of business, transportation, cultural and lifestyle amenities • ✓ • Luxury housing follows luxury goods Luxury buyers paid 98.6% of asking prices in Q3, similar to retail purchases • Tax laws • Although Q1 was impacted, Q3 sales over $10M increased 75% over Q3 2012 ✗

  9. II. NYC in the global context: Luxury inventory days on market

  10. II. NYC in the global context: Top real estate re-sales globally

  11. 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 The Crespi / Hicks estate Dallas, Texas $135 million

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