UPDATED: May 23, 6:04 p.m.: What is the state of the luxury real estate market in New York City? Some say it’s slowing, pointing to price chops of apartments. Others wonder what affect new Treasury rules over disclosure of cash purchases and LLCs and global market turmoil — especially in China — will have on the market.
“Everyone felt, well, the Chinese investment in New York, or in the U.S., would slow down. In fact, it’s increased,” Lorber said. “[Chinese investors] lost 30 percent, they don’t want to lost the other 70 percent.”
Lorber said New York, Los Angeles, Miami, Aspen and the Hamptons remain strong and the correction in the market is for apartments that were mispriced in the first place.
“The market for overpriced apartments has slowed down,” he said.
The Treasury ruling on LLCs took effect March 1, but Lorber dismissed the idea it would put a chill on the market.
“It’s a big nothing,” Lorber said. “A lot to talk about, but it doesn’t mean anything.”
Lorber was also asked about Donald Trump as “developer in chief.” Lorber said it was obvious that Trump was a good businessman, and a quality of being a good president was having smart people surround you — something Trump already has. [CNBC] – Dusica Sue Malesevic
This story was updated to clarify Lorber’s comments on Donald Trump.