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A lot of Americans are watching their homes decline in value, and many families are finding themselves upside down on their mortgages -- owing more than the home is worth.
But don't worry: if you were wealthy enough to afford New York City's sky-high real estate in the first place, you're doing quite well. New York apartments hit record highs in the first quarter -- an average of between $1.63 million and $1.72 million, depending on which data source you believe. That's a year-over-year price increase of more than 19%.
Manhattan real estate rose 13% to between $855,000 and $945,276, depending on which source you believe. But some experts say that that number is inflated by a disproportionate number of high-end properties and that prices on lower-end units are flat to negative.
In a related story, Italian businessman Luigi Zunino is looking to sell a Park Avenue apartment he hasn't yet closed on for $100 million.
According to the Wall Street Journal (subscription required), the 1907 Plaza Hotel where the unit is located is also home to Bear Stearns Chairman James Cayne and developer Harry Macklowe -- both of whom are suffering (or rather their investors are suffering) in the wake of the falling housing market.
But as long as executives who destroy value still reap large paydays, high end real estate will probably continue to do fine.
Manhattan real estate hits a record high
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Reader Comments (Page 1 of 1)
1. Not even close. Most of the ownership of these real estate investments are done in the name of the public corporation with the top tier execs having options on them to purchase at prices lower then cost. The properties are depreciated by the corporation for income tax purposes and all the operational expenses are paid by the corp. When the property is then sold to the exec, the corp then takes additional right offs against income tax. One year and a day later the exec sells the property for "true value" and pays income taxes at the long term capital gains level. Usually the property is sold again back to the same corp if the exec is still there. No sense in making the exec move out.
Posted at 3:33PM on Apr 4th 2008 by John
2. Legendary investor Jim Rogers sold his opulent New York townhouse in Manhatten for $16 million- one million more than the asking price (see item still available in Channeling Jim Rogers section- yellow label, top) at http://www. Barrelomoney.com. Of course that was a year ago-- nevertheless it must be nice.
Posted at 4:40PM on Apr 4th 2008 by Michael Schneider
3. Correction: Above URL is http://www.Barrelomoney.com.
Posted at 4:41PM on Apr 4th 2008 by Michael Schneider
4. Exclusive London Property in prime locations are bullet proof as well.
$100 Million houses aren't purchased on a Nationwide Building Society valuation for sure.
Price indications per sq ft don't exist.
Gary Hersham of Beauchamp Estates has been London's top Real Estate Agent per sq ft for the last 20 years. It's quite simple, 99% of the World is owned by 1% of the Global population.
I can assure you there are not 63 million prime location International properties to go round. As they say "When the yellow eye opens". The Global high street just has new buses coming into town, from Russia, India, South Africa etc.
Wait until the Chinese arrive, they'll just stack the prices up even furthur.
Posted at 2:19AM on Apr 9th 2008 by Nigel McLaren
5. Quet old info but for interested in can be usefull
http://www.articlealley.com/article_499415_15.html
Posted at 3:15AM on Jun 10th 2008 by Zen Borgia