In October, Coldwell Banker Previews International released their semi-annual report tracking the real estate trends and market activity in U.S. cities that attract the largest share of high-net-worth individuals (HNWIs). Unsurprisingly, New York City leads the lists of most closings recorded and listings on the market priced above $1 million, $5 million, and $10 million between the one-year period of July 1, 2014 and June 30, 2015. More astounding, however, is that the number of closings recorded in the city above the $10 million price point is more than the sum of all deals in the next 19 cities on the list combined. According to the study, NYC raked in 217 residential closings of $10 million or more, followed by Beverly Hills and Los Angeles with 34 each. New York again leads the way with 367 listings priced at $10 million or more, followed by Miami Beach, Aspen, and Los Angeles.
Regarding New York City, historical data from CityRealty tallies up a slightly higher number of $10 million+ closings over the same time period, totaling 241 such deals. The recently crowned most expensive building in the city, One57, garnered the greatest number of $10M-plus sales for a single building with a remarkable 30 deals — which by itself is more than all cities in the country aside from the top three. The supertall tower was then followed by a three-way tie between 15 Central Park West, One Madison, and the Walker Tower.
Coldwell Banker partnered with global research firm Ipsos MediaCT to poll HNWIs who they define as those with a net-worth of more than $5 million. The study uncovers that the average HNWI owns two properties and their real estate holdings account for 38 percent of their wealth. The report also finds that investment appeal exerts the strongest influence on purchase decisions today, with 40 percent of the HNWIs citing investment attractiveness as a reason to be in the real estate market. Other top reasons driving property purchases are the desire for a specific location (39 percent), seeking a safer investments than the stock market (38 percent), and taking advantage of low interest rates (31 percent).
When comparing the two lists, New York maintains a healthy ratio between the number of ultra-luxury closings in a given year vs. the number of active listings, whereas if the high-end market maintains its 2014-2015 pace, the city has about 20 months worth of $10 million-plus inventory to sell. Comparatively, Greenwich, Connecticut has more than six years of inventory to sell and Miami Beach nearly four years. However, New York’s listings count does not not consider the dozens of ultra-high-end predevelopment listings lurking on the horizon or in pre-sales.
Map created by Javier Jaramillio
Using data from CityRealty, we mapped out the locations of all 241 closings, which are greatly concentrated around the southern half of Central Park in the neighborhoods of the Upper East Side, Upper West Side, and the touted Billionaires’ Row. Downtown neighborhoods accounted for nearly a third of these deals with buildings along picturesque side streets of Flatiron, Soho, and Tribeca leading the way.
Map created by Javier Jaramillio
CityRealty currently has 481 listings on the market priced at or above $10,000,000, with 155 of those listings already in contract. Like the closings, these high-end listings congregate around the perimeter of Central Park, and in the downtown neighborhoods of Soho, the West Village, and Tribeca. 393 of the listings are found in condominium buildings, many of which are brand new buildings or recent conversions providing top-of-the-line appliances and finishes and an array of amenities. Coldwell Banker’s survey claims that 41 percent of HNW homebuyers cite that a fully automated and wired home environment is important. Also greatly considered are open floor plans (36 percent), home gyms (34 percent), home theaters (32 percent) and safe rooms (30 percent).
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Interactive map and infographics via 6sqft; national charts via Coldwell Banker Previews International