Two areas seem to fare better in the current housing downturn --places that missed the boom and select premium districts in globalgateways where demand remains strong. Off the radar screenneighborhoods had avoided speculation and bidding frenzies. Thefact that values haven't dropped as much may not necessarily begood news -- they're just not places to which people gravitatewhether in good or bad times.
Not surprisingly it's premium addresses in the handful of24-hour global metros which not only hold value, but also evenexperience pricing upswings. Certain established Manhattanneighborhoods stand out as premier examples of seemingly imperviousgold-plate fortresses, particularly along Fifth Avenue, CentralPark West and Park Avenue. In a building I know well, recentapartments still transact at closing above original asking prices.Bidding wars continue in established coops for coveted two andthree bedroom apartments -- enough dollars have flowed through fromyear-end Wall Street bonuses to keep demand strong among the sliverof cash buyers remaining. Some investment bankers and white shoelawyers desperately seek extra bedrooms for growing families.Meanwhile, foreign money taking advantage of the weak dollar andlooking for prime U.S. beachheads sustains Manhattan's condobuying... for now.
But the Wall Street scene continues to deteriorate as the creditcrisis spreads beyond subprime. The real impact on jobs and incomeswill hit during 2008. Condo developers look like they have overshotin Manhattan. There are just too many cranes and constructionprojects around town given the gloomy financial climate. At co-opboard meetings, everyone wonders how long prices will hold up.Lesser addresses start to feel the pinch from tightening creditrequirements. This past Sunday's New York Times' real estatesection crowed now is a good time to buy.
Continue Reading for Free
Register and gain access to:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
*May exclude premium content
Already have an account?
Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.