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New York ultra-luxury real estate sharply cut prices

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2019-03-27 05:27:32

The high-rise building at 157 West 57th Street is fitted with a glass curtain wall that overlooks other buildings in the southern part of Central Park. KARSTEN MORAN FOR THE NEW YORK TIMES New York - New York City's ultra-luxury real estate frenzy characterized by a straight-forward apartment building and a price tag of up to $100 million has finally come to an end. Those homes with high condescending vision and high-end decoration can show their status as high as eight or nine digits. Even if the supporting facilities have everything, their price is far from the actual value. This market is mainly sizzled by a group of super-rich investors who use high-priced real estate as their first choice for asset allocation because they are less volatile than other investments, and they can use the shell company to hide their identity. . But now, the construction boom that has lasted for four years to cater to buyers who are willing to bid $10 million or more has already put the market in an oversupply state. At the same time, wealthy investors have reduced spending because of global market turmoil, and the federal government has begun reviewing some of the all-cash transactions.

The wealthy people are clinging to the wallet, not only because of the turmoil in the financial market. Other global trends have also curbed high-end consumption, such as: China has tightened restrictions on capital outflows; Britain has decided to leave Europe to bring uncertainty; lower oil prices have hampered wealth in the Middle East; in some countries In addition, measures such as raising tax rates have increased the cost of real estate transactions.

Due to the shrinking sales of ultra-high-end projects, some sellers have significantly reduced their prices, and some projects have been postponed.

The developer of the skyscraper that will rise up at 111 West 57th Street said that they will postpone the promotion of promotional materials and promotional activities for condominiums in the building until next year. Some apartments in the project are priced at $57 million.

Building 432, Park Avenue is the tallest residential building in the Western Hemisphere. Its first-floor apartment was initially priced at $78 million to $85 million, but is now split in two, with each half selling for about $40 million.

West 57th Street is commonly known as Billionaire Street. On and around this street, “sales is not just slowing down, but completely stagnant,” said Dolly Lenz, a broker who serves the super rich. )Say. She believes that this section of the Midtown Manhattan corridor is so dead because of the oversupply, the ultra-luxury apartment units with glass walls are highly homogenized and the pricing is too high. "This is simply a death knell," she said.

This is not the only case in New York. After the global financial crisis struck in 2008, investors began to regard high-end real estate around the world as a safe haven for their wealth. But Yolande Barnes, head of global research at Savills, a global real estate agency, said that since mid-2014, in Paris, Singapore, London, Moscow and Dubai, The prices of the best quality real estate have fallen. “These cities have a lot of wealth,” Balnes said. He regards the current price decline as "a fallback that cannot be inevitable after a long-term rise."
Although current pricing is far from being described as a clearance sale, a price cut may mean that the price has touched the ceiling. In Manhattan, when the sales of homes with prices above $10 million declined, the overall performance of the market was quite strong, and homes with a price tag of less than $3 million were particularly sought after.
 According to data compiled by real estate agent Olshan Realty, in the first half of this year, the number of contracted Manhattan homes with a price of $10 million or more dropped by about 18% to 107 sets from 130 sets in the same period last year. According to data compiled by Esslinger-Wooten-Maxwell Realtors, in the Miami area, as of the end of June, the number of villas and condominiums for sale at $10 million or higher has surged 43% from a year ago. "No matter what standard is used, the increment is too large," said Ron Shuffield, president of the company. He pointed out that in the 12 months to June, the price range of villas and condominiums only sold 26 sets. “The world mistakenly believes that demand will never dry up,” said Jonathan J. Miller, president of real estate appraisal company Miller Samuel. “The truth is that the market is not as big as people think.” Developers who stick to the original asking price are not renovating their own products, or they are spreading nets and looking for buyers. In Lower Manhattan, the upper part of the Woolworth Building is being converted into a condominium. In order to attract more sellers, the gorgeous interior is deliberately diluted and replaced by a more modern look.

Le Palais Royal, located in Hillsboro, Florida, is a $159 million luxury home decorated with $7 million in 22k gold foil and a 27-foot waterfall. In order to find a buyer for the Royal Palace, developer Joseph Leone flew to London, Los Angeles, Dubai, Singapore and other places to form a team of agents selling the property instead of just hiring a brokerage company. “I believe customers are looking for something unique,” Leon said. "They are still there, but you need to change your strategy. You need to be creative." The price of high-end real estate is still at a record high, but that's mainly because many of the deals that are now completed, the contract may be signed as early as 18 months ago. At that time, many buildings were still in the construction phase and the market was firmer. Developers insist that sales in the high-end market are continuing, but not as fast as they have been in recent years. Miller of the Miller-Samuel evaluation company is not so optimistic. “It takes a little time for sellers of new or second-hand homes to accept sudden changes in the market,” he said. “It’s not at this stage that there are no buyers. But no buyers are willing to accept the price in 2014.”

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