The luxury real estate market in New York won’t be able to sustain itself, developer Don Peebles said in a recent interview with Bloomberg TV where he discussed the recent $150 million listing at Chetrit’s Sony Building, which was first reported by The Real Deal.
“We are in a market where we’ve seen rapid appreciation,” Peebles said. “And I think that’s going to slow down.”
The pool of buyers who can afford a $100 million condo, he said, is shrinking. There is only a handful of units that are more than $50 million, continued Peebles, who is developing a condominium conversion at 108 Leonard Street in Tribeca. Besides Russian instability and a weaker Euro, Peebles said that it might become more difficult for international magnates to quietly invest in New York City’s real estate market, after the New York Times’ recent exposé about foreign buyers at the Related Companies’ Time Warner Center.
Still, Peebles said, we’re not headed for a crash. “We’re headed for a landing,” he said. New York needs luxury condos for domestic buyers, rental housing and workforce housing, he said. [Bloomberg TV] — Claire Moses