Tobias Salinger | Commercial Observer
Excerpt from State of the Market ’14/’15:
The affordability of New York City affects elections and real estate companies alike. With sales like Chinese insurance company Anbang Insurance’s $1.95 billion purchase of the Waldorf-Astoria rocking the property market and luxury penthouses fetching north of $90 million dollars at One57 and 432 Park Avenue, real estate industry leaders have expressed concerns about the city’s future.
“If your workforce can’t afford to live within close proximity to where you need them, you have a challenge to running the business,” Mr. Harbert of Colliers International said. “Are we really paying people what they need to make to afford the rent at all the new developments?”
“All the record sales in today’s market have made an impact,” GFI Realty Services President Michael Weiser said.
“That all has trickle down effect because it’s bringing the bottom up,” Mr. Weiser said. “That is really what’s driving the market. Where in New York City can you get a nice apartment for $1,200 a month or less? We all know the answer to that, and it’s nowhere.”
“Supply over the coming years is going to realign demand,” said Stuart Siegel, New York City Chief Executive Officer of Engel & Völkers, the high-end German brokerage house, which opened its first office in New York in May. “That has to have an impact on prices.”
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