The Changing Face of the NYC Luxury Residential Market

Bonnie Stone Sellers, CEOChristie’s International Real Estate

October 18, 2013

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What is the definition of luxury residential real estate globally?

I. Defining the luxury buyer in New York

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

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Trends in Luxury Apartment MarketsI. 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

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I. Defining the luxury buyer in New York: Market overview, Q3

Average price per

square foot: $1,132

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Trends in Luxury Apartment MarketsI. Defining the luxury buyer in New York

Trends in luxury apartment markets

• Flexibility for renovations

• High ceilings

• Apartment finishes to the level of a Five Star hotel

• Family kitchens along with commercial quality kitchens

• Classic apartment layouts and traditional materials such as stone and glass

• Sustainability in MEP systems and high-end technology

Infrastructure

• Range of common spaces: gyms, pools, spas, theatres, lounges, roof gardens

• Parking and storageAmenities

Services• Hotel-like services: concierge, doorman, housekeeping, catering, fine dining

• Security and privacy

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I. Defining the luxury buyer: Who is fueling the trend?

• Primary residence city

• Growth in job market and

Wall Street successes

1. New Yorkers 2. Foreigners

• 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

3. Millennials

• 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

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II. NYC in the global context: Luxury Defined Market Report

2012 Christie’s International Real Estate Index

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II. NYC in the global context: Luxury Defined Market Report

✓ Q3 2013 saw 25% fewer listings than Q3 2012Limited supply

Global HousingMarket Trends

In New York

NY has it all—economic stability, ease of

business, transportation, cultural and lifestyle

amenities

Lifestyle attractions

Luxury buyers paid 98.6% of asking prices in

Q3, similar to retail purchases

Luxury housing follows luxury goods

Although Q1 was impacted, Q3 sales over $10M

increased 75% over Q3 2012

Tax laws

✓

✓

✗

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

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

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II. NYC in the global context: Does NYC have the top US properties?

Copper Beech FarmGreenwich, Connecticut$140 million

The River HouseManhattan, New York

$130 millionThe Crespi / Hicks estateDallas, Texas$135 million

The Owlwood EstateLos Angeles, California$150 million (reportedly)