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