Overseas buyers make up up one third of New York City condominium purchasers and 15 percent of total purchases, according to a report by Stribling & Associates cited by Crain’s. That is down from the peak market of 2000, when 30 percent of total buyers were foreign. The biggest overseas buyers today are those in Russia, China, Brazil and Argentina, a change from the early years of the new millennium when they hailed from Europe, and particularly Ireland.
“Over the last year the dollar has been especially weak against a number of foreign currencies and that has increased foreign investor participation in Manhattan,” said Jonathan Miller, CEO of Miller Samuel. “Foreign buyers are one of the key reasons condos outsold co ops in the third quarter.” Since foreign buyers have a greater tendency to use all-cash in purchasing property, they have not been hurt as much by the tight credit market.
In addition, as Miller told The Real Deal this month, “foreign buyers are the reason that the new development market has gained traction.” A $48 million condo purchase at the Plaza in March by Russian composer Igor Krutoy was the priciest condo ever sold in New York City. [Crain's]
