Luxury NYC condo investments vs. hog futures

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

TRD New York /
Jul.July 25, 2014 03:50 PM

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.

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


Related Articles

arrow_forward_ios
With a cooling trade war, stocks perform well, including real estate. (Credit: iStock)

Real estate stocks push up this week as U.S.-China trade tensions ease

Real estate stocks push up this week as U.S.-China trade tensions ease
416 West 25th Street and Maverick Real Estate Partners principal David Aviram (Credit: Google Maps and LinkedIn)

Chelsea landlord claims “predatory” lender is charging a crippling interest rate as punishment after losing foreclosure case

Chelsea landlord claims “predatory” lender is charging a crippling interest rate as punishment after losing foreclosure case
Related chairman Stephen Ross and Related Companies Portfolio CEO Richard O’Toole withBronx Terminal Market and Time Warner Center (Getty, Google Maps, Wikipedia)

Related lays out $200M debt settlement plan for Tel Aviv bondholders

Related lays out $200M debt settlement plan for Tel Aviv bondholders
Inside a $1.8B new development odyssey

Inside a $1.8B new development odyssey

Inside a $1.8B new development odyssey
(iStock)

TRD Insights: The 56 REITs whose bonds the Fed will buy

TRD Insights: The 56 REITs whose bonds the Fed will buy
A rendering of 100 Claremont Avenue, Melissa Burch of Lendlease and Ron Moelis of L+M Development Partner (Getty, Robert A.M. Stern Architects)

L+M, Lendlease snag $250M loan for UWS tower

L+M, Lendlease snag $250M loan for UWS tower
From left: 172 Madison Avenue, 100 East 53rd Street, Woolworth Tower, 53 West 53rd Street, 615 10th Avenue

Loan wolves: Bankers are stalking developers as debts come due

Loan wolves: Bankers are stalking developers as debts come due
200 East 59th Street and United Overseas Bank CEO Wee Ee Cheong (Google Maps, UOB)

Condo project beats the odds, lands $204M loan

Condo project beats the odds, lands $204M loan
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...