Xinyuan Hell’s Kitchen condo won’t be super-luxe

City's luxury condo market near "very, very dangerous" bubble: Liang

TRD New York /
Jan.January 25, 2016 10:04 AM

Xinyuan Real Estate will move ahead with plans for a condo tower on the Hell’s Kitchen development site it recently closed on, though noting the property will aim for a price point below the high-end luxury condo market.

The Chinese developer has acknowledged signs of a glut in the city’s luxury home market and distanced itself from recent projects aimed at ultra-wealthy investors – with its first Manhattan project instead looking to appeal to dual-income families and upper-middle-class buyers from both the U.S. and China.

“New York’s luxury condo market is now at a very, very dangerous edge of bubbles,” John Liang, Xinyuan’s U.S. managing director, told Bloomberg. “It’s a myth that Chinese buyers all come to the U.S. loaded with cash.”

Xinyuan closed its $57.5 million acquisition of the development site at 615 10th Avenue, between West 44th and West 45th streets, earlier this month. The Beijing-based firm – which operates in the U.S. through its subsidiary XIN Development – entered contract on the property last fall, as The Real Deal reported.

The company expects its apartments there to sell for up to $2,000 per square foot, Liang said – significantly less than the $2,775 per square foot average for new development listings in Manhattan last year, according to research by Halstead Property Development Marketing.

At that $2,000 per square foot price, a two-bedroom condo at the Hell’s Kitchen project would cost roughly $1.5 million – a price “affordable for upper-middle-class New Yorkers,” according to Liang.

Luxury residential markets in both New York and other global core urban markets have seen signs of softening in recent months, leading to increased concerns over the future viability of new, high-end developments at exorbitant price points. [Bloomberg]Rey Mashayekhi


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
Nightingale’s Eli Schwartz and 111 Wall Street (Credit: Google Maps)

Nightingale, Wafra seek $860M to redevelop 111 Wall Street

Nightingale, Wafra seek $860M to redevelop 111 Wall Street
Andre Balazs  and 158 Mercer Street (Getty; Google Maps)

André Balazs lists lavish Soho condo for $12M

André Balazs lists lavish Soho condo for $12M
Clockwise from left: 950 University Avenue in the Bronx, 27-55 Jackson Avenue in Queens, 149 Pioneer Street in Red Hook and 416 Metropolitan Avenue in Williamsburg (Google Maps)

EB-5 investor snags Hunters Point resi development: Mid-market sales report

EB-5 investor snags Hunters Point resi development: Mid-market sales report
220 Central Park South and Steve Roth (Google Maps, Getty)

Another 220 Central Park South condo sells for $61.6M

Another 220 Central Park South condo sells for $61.6M
From left: Henry Torres, Jorge Perez, Alicia Cervera Lamadrid, Gil Dezer and Joseph Kavana (iStock)

“Anything and everything is negotiable”: Incentives for condo buyers mount in Miami

“Anything and everything is negotiable”: Incentives for condo buyers mount in Miami
arrow_forward_ios

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

Loading...