search

The Real Deal Logo

Trending

Lawmakers reach sweeping housing deal with “good cause eviction,” new 421aLawmakers reach sweeping housing deal with “good cause eviction,” new 421aMarty Burger’s new venture sputters on takeoffMarty Burger’s new venture sputters on takeoffHousing deal critics spin themselves sillyHousing deal critics spin themselves sillyDavid Werner strikes $115M deal to snap up 100 Wall Street at big discountDavid Werner strikes $115M deal to snap up 100 Wall Street at big discount
New York

Luxury NYC condo investments vs. hog futures

Average 10-year return on condos at the city's marquee buildings was 6.5 percent

From left: 15 Central Park West and a pig
From left: 15 Central Park West and a pig

Investors who put money into a well-known New York City condo building would be doing slightly better than buyers of hog futures over a 10-year period, but their returns would trail those of folks who bet on gold.

Over the last decade, a portfolio of the city’s 100 best-known condo buildings put up compound annual growth of 6.5 percent, the Wall Street Journal reported. Comparing that return with other popular investments, the newspaper found that Gotham’s marquee condos fared better than the S&P 500 stock market index and hog futures, but couldn’t beat gold, oil futures or coffee futures.

Sign Up for the undefined Newsletter

That said, those high earners come with considerably more risk than real estate.

“The consistency of New York City real estate is something that is really hard to match,” Pete Culliney, director of research for CityRealty, told the Journal.

A few notable deals, such as the $48 million sale of a 15 Central Park West duplex, boosted the average 10-year return of condos, the newspaper reported. [WSJ] — Tom DiChristopher

Tags
CondosReal Estate Finance