The Real Deal New York

Numbers will be “astronomical” in 2015: Howard Lorber

Foreign buyers largely focus on Central Park area
January 07, 2015 09:13AM

Douglas Elliman chairman Howard Lorber is rather optimistic about the state of New York City’s real estate in the new year.

The average sales price for an apartment in Manhattan in 2014 hit a record-setting $1.72 million, a 19 percent jump from the year before, according to Douglas Elliman, and now go for roughly $1,300 per square foot. Due to strong demand, half of all sales in Manhattan went for at least the asking price in 2014, according to CNBC.

CNBC’s Robert Frank asked Lorber if this trend will continue in the new year. In December alone, Lorber said, four apartments in new developments were sold for an average price of $30 million. “So we know that we are going to have a good start to the new year.”

People will continue to pay top dollar for luxury units in upscale new developments such as One57 and 432 Park, Lorber said. While many buyers at the top of the market are foreign, Lorber said those buyers focus mostly on the area around Central Park. Downtown, the city’s “hottest” market, according to Lorber, barely sees any foreign investors. At One57, Lorber estimated that roughly two thirds are foreign buyers. At 432 Park, he said, about two thirds of the buyers are domestic.

He added: “The numbers are going to look astronomical for 2015.” [CNBC] — Claire Moses

  • downtownbroker

    We’re already at historic highs. And Lorber now thinks “astronomical” is the appropriate choice of words?? I know he has a nervous salesforce wondering if they’ve invested in the right strategies post-Lehman, and defaults to optimism in any market. But this is dangerous. I’ll just take slow and steady growth, thankyouverymuch. Or does he not realize the ultra-luxe market of $5k+/ft is teetering already?

    • Lionel

      This is a joke…

      • downtownbroker

        Ultra-luxe is panicked. 210 W 77th pulled their listings from the market, no sales. 12 E 13th? Pulled, no word on re-entry. And One57 only had one closing in a tower unit for Q314.
        Russia/China oligarchs can only buy so may $25M+ apartments, don’t you see?

        • WannaBeLandlord

          Good point. Oil collapse will likely take a few American buyers out of the market. I know a lot of oil & gas types from all over the US are big buyers in NYC and coastal California.

  • Steven Covexx

    Is Charlie Sheen and a Chinese syndicate buying all cash and at huge premium
    Castle Brands Inc stock symbol ROX? Douglas Elliman is owned by Vector Group
    which owns 36% of Castle Brands Inc.

    • WannaBeLandlord

      if Vector Group is selling blow then Charlie Sheen is for sure a buyer.

  • Steven Covexx

    Lorber, does not mention record prices panicked Hong Kong investors are paying
    to park money in USA!

  • dave

    petro and extract economies will collapse unless oil rebounds significantly. People rush to the strengthening dollar as a result. As much as I would like to be pessimistic, the US will be the beneficiary to what will global (except modern economies) stagflation. Uncertainty has slowed down the top of the market. It will pick up. Quickly.