Luxury property shows strength
New York, New Jersey and Connecticut's luxury property market is making positive gains as the United States economic recovery continues to gain momentum.
New York, New Jersey and Connecticut's luxury property market is making positive gains as the United States economic recovery continues to gain momentum.
Research by property consultants IP Global reveal that property investments in New York still offer excellent potential with median Manhattan prices for luxury condominiums rising 6 per cent year-on-year in the first quarter of this year.
Real estate firm CBRE adds another reason to be positive about the US luxury property market when it reported that Asian investors are on track to spend more on US multifamily assets this year than at any other time previously.
A report on New Jersey homes reveals that property is selling faster than a year ago, and the data shows that real estate professionals in the state expect the housing market to remain strong for the foreseeable future.
Figures released in May by New Jersey Realtors put the median sales price for single-family properties, townhouses, condominiums and properties in adult communities in the state at US$270,000 in April, a jump of 4.2 per cent from 12 months earlier. The report also showed an increase in new listings, pending sales and closed sales.
The CBRE research shows that investment volumes by Asian buyers, in cities such as New York, San Francisco and Los Angeles, last year and in the early part of this year had increased.
According to Berkshire Hathaway, statewide prices in Connecticut remained consistent year-on-year with a 29.07 per cent increase in sales in the second quarter of this year in the luxury sector, especially properties valued at more than US$2 million with the majority of sales in the US$2 million to US$5 million range and 95.49 per cent of them in Fairfield County. Sales are expected to continue to improve for the remainder of the year.
Asian investors have been drawn to Manhattan's luxury property market, especially 432 Park Avenue, located between 56th and 57th Street. The 96-floor luxury residential tower was developed by CIM Group and Macklowe Properties. The 426-metre residential building is billed as the tallest building in the western hemisphere, and has 104 residences.
According to Macklowe Properties' founder Harry Macklowe, 432 Park Avenue has clocked up nearly US$1 billion in sales, with more than 50 per cent of the residences under contract.
In a show of confidence in the US economic recovery, two-thirds of the residences under contract have been signed by US-based buyers, mainly from California. The remainder of the residences under contract have been signed by buyers from China, South America, the Middle East, Britain and Russia. Macklowe says that five residences have been signed by buyers from Hong Kong, the mainland and Singapore.
Like other luxury residences, the Park Avenue building offers amenities approximately 30.5 metres above ground and comprises three full floors. About 30,000 sq ft of amenities, including a full floor dedicated to entertaining with a lounge, private restaurant and nearby outdoor terrace for dining and events, 23-metre indoor swimming pool, spa and fitness centre with sauna, steam and massage rooms, library, a billiard-room and other services are provided in the development.
The Park Avenue address has also been a key factor in attracting interest from investors in Asia, particularly Hong Kong and mainland China. Park Avenue is renowned for being home to wealthy domestic and international families and global leaders.
The trend of wealthy Chinese buying US businesses and major commercial property continues to strengthen.
