Stephen G. Kliegerman
President of Development Marketing
New Yorkers compete with overseas investors
Last month, Voice Living reported on the way foreign buyers have buoyed New York's condo sales and helped keep New York from suffering the same fate as other markets. That investment continues, with buyers from Korea, Russia, and even Dubai continuing to express interest despite the worldwide economic slowdown.
Stephen Kliegerman, the executive director of Halstead Property Development Marketing. believes that, however, these buyers aren't pushing out New Yorkers, or even competing with the locals. "While they're definitely having an impact," he says, "people aren't finding themselves losing out on their homes because of a foreign buyer."
Rather, these overseas investors - who make up as much as 10 percent of condo buyers, according to Kliegerman - are buying at market prices. The reason they can pay full-market value is the strength of their currency. "The foreign buyer has a built-in cushion," Kliegerman notes. "They are still here, and they still see New York as a comparative value. They're getting even more comfortable now that the election is behind us." On the other hand, paying the asking price effectively freezes out bargain hunting locals.
Even the woes on Wall Street may have a Silver lining: More and more overseas companies have seen the advantage of buying a condo for their employees temporarily stationed here over paying for long-term hotel stays.
With the integration of finance Companies into larger entities (such as Lehman Brothers being taken over by Britain's Barclay's), this trend will only continue.
Wednesday, November 12, 2008