Here comes the cold water: NYC resi market “past the peak”

Inventory and construction costs among obstacles: broker

New York /
Nov.November 12, 2015 01:25 PM

Not everyone’s bullish on the city’s residential real estate market heading into 2016.

“I’m telling clients – and not making public – that we think we are past the peak and they should get realistic and drop the price, take the bid and move on,” one major investment broker recently said, on condition of anonymity.

There are thousands of pricey, available residential condo units on the market, the broker told the New York Post – pointing to Gary Barnett’s decision to market a group of rental units at his One57 condo tower through Eastdil Secured at “a large discount.”

Developers are also watching the hotel market closely, the source said, as the hotel industry will react quickly to any changes in tourism and business in the city. Lenders, meanwhile, are reportedly asking for more equity from developers, while contractors are busier than ever – leading to higher construction costs as well as delays.

And there is also government regulation, with a mayoral administration that is perceived to be focusing on affordable housing and rent controls at the expense of free-market investment conditions. While Manhattan remains strong, the source added, secondary and tertiary markets are taking the hit.

So there you have it – depending on who you ask, the New York real estate market is either performing ‘remarkably’ or set for a downturn into the dumps. [NYP]Rey Mashayekhi


Related Articles

arrow_forward_ios
Extell Development's Gary Barnett (Credit: Getty Images and iStock)

Chelsea residents paid Gary Barnett $11M to protect their views from a planned tower

Chelsea residents paid Gary Barnett $11M to protect their views from a planned tower
Central Park Tower

Extell just went public with Central Park Tower listings

Extell just went public with Central Park Tower listings
Gary Barnett taps outsider as CEO of Extell

Gary Barnett taps outsider as CEO of Extell

Gary Barnett taps outsider as CEO of Extell
Joan Collins and 110 East 57th Street #8EFG (Getty, BHS)

Soap star Joan Collins lists longtime Midtown pied-à-terre

Soap star Joan Collins lists longtime Midtown pied-à-terre
News of President-elect Biden’s $1.9T stimulus plan held promise for employment and economic activity. (Getty)

Real estate stocks hold gains even as market doesn’t

Real estate stocks hold gains even as market doesn’t
Tommy Hilfiger and his recently sold estate in Greenwich, CT. (Getty, Janet Milligan)

Tommy Hilfiger’s Greenwich estate sells for $45M

Tommy Hilfiger’s Greenwich estate sells for $45M
Jenna Ryan was part of a group who flew on a private plane from Denton, TX, to Washington, D.C., with the intention of joining the protestors (Twitter.com/DotJenna)

Texas Realtor faces criminal charges for role in Capitol attack

Texas Realtor faces criminal charges for role in Capitol attack
Porch CEO Matt Ehrlichman (iStock)

Porch snaps up four startups for over $122M

Porch snaps up four startups for over $122M
arrow_forward_ios

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

Loading...