Sales are booming in New York City, even as international buyers have been mostly absent from the real estate market, barred by travel bans from coming to the United States, but that’s all about to change.
The Biden administration announced international travelers who are fully vaccinated against the coronavirus can enter the U.S. starting on November 8th. Brokers say their return will supercharge the market—but a lack of listings is a problem.
International buyers have been a major piece missing from the puzzle. This group has long seen NYC real estate as a good investment, especially high-end condos, and foreign investment has driven up prices.
But although these buyers slowed to a trickle during the pandemic because of travel bans and Covid concerns, still the NYC market has been recovering pretty well without them. According to the Miller Samuel report, in the third quarter, sales of Manhattan condos and co-ops more than tripled compared to last year, the highest quarterly total in more than 32 years.
Now with an actual date on the calendar for U.S. borders to open, foreign buyers can make plans to get on a plane to come here. And they have more incentives than just real estate: The reasons for keeping a pied à terre in the city are falling into place with the reopening of Broadway and the return of restaurant dining.
Many international buyers think there’s a “fire sale” happening in NYC real estate.
There isn’t—prices are in large part still somewhat discounted, but the Covid discount has been shrinking fast. According to the Miller Samuel Report, the third quarter listing discount in Manhattan, for example, was 5.6 percent, representing the spread between the closing price and last asking price—which was significantly lower than a spike in the third quarter of last year of 8.9 percent.
Some international buyers may have trouble finding what they want as the number of available listings has fallen sharply, “A one bedroom in Williamsburg with outdoor space in a new development? Those are going so fast that by the time you put in an offer it’s gone—and the building has just opened. Everything is sold off of floor plans. Even though it must be said that more and more new development condos have become available since the city’s real estate market reopened in June 2020.
So, what’s going to happen? It is easy to imagine a market on steroids with the return of foreign investors, but probably the assault will not be immediate. Instead, demand will slowly pick up again toward the usual levels, which have always been quite high.
(source: brickunderground.com)
Developer Applies for Construction Permit To Build Miami’s First-Ever Supertall
Developer PMG has just applied for a construction permit to begin work at the 100-story Waldorf Astoria supertall tower, and this is the first time in Miami’s history that a developer has applied for a construction permit to build a supertall. At 1,049 feet, the Waldorf Astoria will be nearly 200 feet taller than the current tallest building in Miami. According to the permit filing, site and soil improvements over a total of 43,791 square feet of area are planned with a foundation work estimated cost of $5,165,000. PMG said this month that condo sales are strong and that site work would begin in the fourth quarter of 2021.
(source: thenextmiami.com)
