Luxury bubble? Industry heavyweights lean toward “yes”

Toll, Related execs say 57th Street is getting crowded

TRD New York /
Oct.October 22, 2014 05:16 PM

Is New York City’s luxury housing bubble getting ready to pop?

It’s a recurring and, as of late, frequent question — and one that industry heavyweights tackled Wednesday at the Urban Land Institute’s fall conference.

Developments Along The 57th Street corridor – dubbed Billionaires’ Row – have been cited most often as examples of an inflated market, thanks to eye-popping prices like the $34 million paid recently for a 4,483-square-foot condo at Extell Development’s One57.

Bruce Beal, president and general partner of Related Cos., noted that high land costs in the area helped spur the high-end projects, which also benefitted from investments of foreign capital. “The question is how much more foreign capital is going to flow in here,” he said.

“If you look domestically, you are unfortunately pricing out people who live here. Not everyone is a hedge fund manager,” said Beal. “I tend to think we’re kind of at the top of what really should be produced there now.”

Robert Toll, executive chairman of national homebuilder Toll Bros. Inc., acknowledged the push-and-pull felt by developers. “It seems like we hit the goal post last year,” he said, adding that it’s “difficult to pull the ripcord and say, ‘Enough.’”


Related Articles

arrow_forward_ios
Here are the week’s top luxury sales

Here are the week’s top luxury sales

Here are the week’s top luxury sales
Clockwise from left: John D. Rockefeller, Izzy Englander, Steven Mnuchin, David Koch, Jacqueline Bouvier, and William Zeckendorf (Credit: Getty Images and StreetEasy)

For 15 years, David Koch lived at the world’s “richest building”

For 15 years, David Koch lived at the world’s “richest building”
Here are the week’s top luxury sales

Here are the week’s top luxury sales

Here are the week’s top luxury sales
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
Ghost Towers

NYC’s ghost towers: How many Manhattan luxury condos are owned by people who don’t live there?

NYC’s ghost towers: How many Manhattan luxury condos are owned by people who don’t live there?
Facebook CEO Mark Zuckerberg and Neiman Marcus at Hudson Yards (Getty)

Facebook eyes Neiman Marcus’ Hudson Yards shop

Facebook eyes Neiman Marcus’ Hudson Yards shop
Stephen Ross and Hudson Yards (Getty, iStock)

Related halts payments to Hudson Yards EB-5 investors

Related halts payments to Hudson Yards EB-5 investors
Ashraf Pahlavi and 29 Beekman Place (Getty, Compass)

Iranian princess’ Midtown palace finally finds a buyer

Iranian princess’ Midtown palace finally finds a buyer
arrow_forward_ios

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

Loading...