New York
Although 2014 was very much London’s year as overseas investment poured in, 2015 may well belong to New York with all signs showing that this great US city looks set to overtake. A stroll around Manhattan certainly backs this up with real estate hoardings on every corner.
Douglas Elliman Fine Homes and Knight Frank Residential agree that volatile emerging markets around the world are driving demand and NY supply is booming.
“There is a significant amount of luxury inventory coming to market this year, which should increase the time on the market, as the sense of urgency to purchase will lessen,”
says Knight Frank’s Sarah Simpson.
“Buyers will take their time as they explore more options and are willing to wait in order to find the best in class development.”
Current Manhattan hotspots include; Billionaires Row, West Chelsea and the Financial District with price barriers continually being smashed. The penthouse at One57 recently sold for $100m and 40% of new development sales are now foreign purchasers coming from all parts of the world report agents. Some buyers are betting on the US dollar continuing its run.
“Although the recent dollar rally has increased the barrier to entry,”
says Ms Simpson,
“Most believe the dollar is poised for an extended rally, creating additional investment opportunity via currency arbitrage. That paired with the predicted capital appreciation makes the US market very attractive to the foreign investor.”
An asset piggy bank
Kirk Henckels, Vice Chairman & Director of Private Brokerage at Stribling & Associates, describes last year’s top end market as ‘a wild ride in certain, highly publicised categories’.
“New condo developments have attracted foreign buyers at all price ranges,”
he says,
“Using New York real estate as their asset piggy bank.”
Mr Henckels finds that ‘trophy buyers’ of all nationalities are only interested in the highest quality in the condo, cooperative or townhouse category. He says that average prices have gone up significantly as many of the new condo developments are beginning to close at relatively high prices.
“Over 6,000 new development condo units will be coming on to the market in 2015 versus less than half of that last year. There is a concern that New York has overbuilt luxury units, especially in the $10m+ range,”
Mr Henckels warns. He believes that international buyers in certain developments now make up to 60%.
“Buyers are from everywhere with Canada, Europe, the Middle East, Brazil being of note. Asian buyers are also strong participants but the Chinese are entering carefully and buying $1-2m apartments for their college student children.”
Silvio Pagliani, President of LuxuryEstate.com, has watched a ‘frenzy of new development over the last 18 months’.
“This year a record 2,386 newly built Manhattan luxury apartments will be listed for sale leading to concerns that frantic development in some parts of the city including Midtown and the neighbourhood near the High Line could overload the market with luxury apartment projects,”
he says.
Mr Pagliani finds that increased supply means that buyers are taking longer to seal deals and sounds a note of caution.
“Top luxury brokers have expressed concerns that if prices climb too high, buyers will revolt and the market will start to cool.”
He thinks that – as the dollar rises and international purchasing power diminishes – foreign interest could wane just as developers are releasing a flux of new opportunities.
“In the past 12 months the US dollar has strengthened against all of its 16 major peers, with the exception of the Swiss franc. The falling ruble against the dollar has prevented some Russians from buying, although, for others it has reinforced their original motives for moving their assets out of Russia and into the US.”
New Museum: 235 Bowery, New York
Set within the full service New Museum Building on Soho’s cobbled block, this condominium penthouse has panoramic, protected views. The entire apartment was recently renovated to the very highest standards and has elevator access. Opening to a gracious vestibule, this leads to a great room with a wood-burning fireplace, a dining area and a chef’s kitchen with 11 foot high ceilings.
There is a sumptuous master bedroom suite with rare arched windows as well as five additional large bedroom suites. A stairway leads to a more formal living and dining experience with direct access on to three immaculately landscaped terraces. On this level, which is also accessible via elevator, is a magnificent private screening room with a projection room.
£25m / €33.5m / $38m
Douglas Elliman Real Estate +1 212 460 0655
Spreading the investment
New York remains a top choice for investors, although their buying habits may be changing. Brokers report that investors with $15 million to spend are now choosing to buy two or three smaller units instead of a single larger one, although most feel that the priciest condos are still sound investments long term.
“It is also possible that Manhattan’s status as a safe haven for buyers means it will ultimately benefit from overseas turmoil, pushing wealthy foreigners to invest in the US even with limited buying power. Regardless, New York will always be among the world’s top destinations for culture, technology, business, finance, entertainment, and luxury real estate,”
says Mr Pagliani.
Diane Ramirez, CEO of Halstead Property, says that – despite price hikes – NY remains the world’s hottest spot:
“In general, we are still the best priced real estate market in the world.”
With records constantly being broken, Ms Ramirez points to the Zeckendorf Development which will have the most expensive property to go on the market this year.
“They will soon list a triplex penthouse at 520 Park Avenue for $130 million. It’s a very dramatic and exciting property.”
She finds that international buyers gravitate to the 57th Street corridor thanks to proximity to shopping, familiarity with the neighbourhood and the sheer choice of luxury amenities.
“We can never project return on the money,”
concludes Ms Ramirez.
“However, New York City proves to be a safe haven again and again.”
West Village, New York City
This spacious four-bedroom, four-bathroom duplex penthouse is one of Richard Meier’s masterful designs and Downtown Manhattan’s icons. On the market for the first time, the 4,551 square foot, four-bedroom residence is the perfect amalgam of minimalist design and grandiose scale, offering extraordinary light and space.
It features an expansive living area with 21 foot ceilings and floor to ceiling windows showcasing the incredible views of Manhattan’s skyline and the Hudson River. The property is wrapped by a private terrace of nearly 1,800 square feet, offering yet another magnificent entertaining space.
£26.4m / €35.3m / $40m
Christie’s International Real Estate +1 212 317 3674
165 Charles Street, West Village
Located on the 12th floor, this 2,541 square foot corner apartment has fabulous views over the Hudson River, south to the Statue of Liberty and east to the Empire State Building. The three-bedroom, loft apartment features high ceilings and interiors designed by Richard Meier. The living room has floor to ceiling glass walls with a 35 foot south facing terrace for outdoor dining, while the master bedroom, has sweeping views over West Village. There are two additional bedrooms and bathrooms.
The amenities at 165 Charles Street are among the finest of any building in New York City. They include a 24-hour concierge, fitness centre with top of the range gym and sauna, 35 seat cinema, residential lounge and a 50 foot infinity edged swimming pool.
£7.6m / €10.5m / $11.5m
Abercrombie & Kent International Estates +44 20 3667 7016
Harbor’s Edge, Sag Harbor, The Hamptons
This penthouse enables its owners to enjoy waterfront living and all the amenities of a full-service building. It offers multiple terraces that overlook Sag Harbor’s marina and is oriented so the sunsets can stream in, illuminating the living and dining spaces and filtering back to the open kitchen.
In addition to light-filled common spaces, this penthouse has a master bedroom with private terrace, private elevator access and a private garage. Every space has been designed to balance convenience and comfort with contemporary luxury and cutting-edge design.
£3.8m / €5.1m / $5.75m
Halstead Property +1 212 734 0010
The Beekman Residences, Manhattan
Designed by Thomas Juul-Hansen, these private residences start at 172 feet high. The Beekman Penthouses and one, two, three-bedroom residences are modern canvases showcasing unparalleled 365 degree views of Manhattan – from river to river and downtown landmarks to uptown parks. Exclusive services and amenities can be reached by a quick elevator ride or a phone call. These include in-residence dining by Tom Colicchio’s restaurant and personal training in the state-of-the-art fitness centre.
From £1.1m / €1.5m / $1.7m
Knight Frank +44 20 7861 1199
West Broadway, Tribeca
This sophisticated, 3,650 square feet corner residence has been renovated to perfection and features grand-scale rooms, a sprawling four-bedroom layout and museum-quality finishes throughout. Accessed by key-locked elevator, the property includes a wide entrance gallery, magnificent corner living/dining room with 11 foot beamed ceilings, wood-burning fireplace, custom milled wet-bar and sweeping views over the historic district and city beyond, from endless walls of oversized double-glazed windows.
The palatial master bedroom suite is a sumptuous sanctuary and offers a separate sitting area with Hudson River views, an enormous fitted walk-in closet, and a stunning en suite bathroom. The king-sized guest bedroom is equally beautiful, and features a custom walnut headboard with built-in bookshelves – itself a
piece of art!
£6.6m / €8.8m / $10m
Halstead Property +1 212 734 0010
Amagansett, The Hamptons
Built in 1910 by Devon Colony founder Richmond Levering, this historic home is on more than five private acres far above sea-level on the Amagansett Highlands. The residence is one of five original homes in the Devon Colony, a historic enclave that includes the vacation residence of William Proctor of Proctor and Gamble. Full of original architectural detail, the living room features decorative columns, French doors and a tiled fireplace.
A formal dining room, renovated eat-in kitchen with sitting room, and a large playroom/family room complete the first floor. An en suite master bedroom has wonderful views of nearby Gardiners Bay while the second floor has five additional guest bedrooms and two bathrooms. Outside there is a parterre garden, an elevated brick patio with decorative fountain, a swimming pool, tennis court and expansive lawn. The property also includes a two-bedroom, one bathroom guest cottage and a newly renovated studio.
£8.6 m / €11.5m / $13m
Halstead Property +1 212 734 0010
Located across the street from St Patrick’s Cathedral and only steps away from Rockefeller Center – the New York Palace’s world-renowned courtyard features motifs from several 15th century Italian cathedrals and has served as the entrance to the historic Villard Mansion since 1882.
A recent major renovation has transformed the property’s premier rooms and suites in The Towers, a hotel-within-a-hotel. Additional upgrades included new lobbies, specialty suites and restaurants and bars. With 909 rooms and suites, The Palace is known for unparalleled splendour, spectacular views, spacious rooms and exquisite service.
Two new, 5,000 square feet triplex suites – The Jewel Suite by Martin Katz and The Champagne Suite – sit 53 storeys above Manhattan at the top of The Towers. The magnificent Jewel Suite is adorned in rich fabrics and glittering jewel-inspired tones and finishes. Each guest who books the suite at its nightly rate will receive an original Martin Katz diamond microband ring, worth $2,500. Guests can also arrange for rare access to Mr Katz for private showings and custom jewellery creations.
Upon entering The Champagne Suite, guests are met with a striking series of floor-to-ceiling windows offering an abundance of natural light and breathtaking views of midtown Manhattan. A rustic wine cave designed for hosting exclusive tastings led by trained sommeliers is yet another highlight of this stunning suite.
Additional amenities for both of the specialty suites include private, express elevators an expert maître d’étage service, Maybach car service and en suite kitchens.
Rates for each suite begin at
£16,450 / €21,400 / $25,000 per night
www.newyorkpalace.com
