New York luxury homeowners confident of finding buyers amid coronavirus-induced market rout
- Some market observers say the latest financial turmoil comes at an unfortunate time for New York where a property glut is looming
- Luxury home owned by late architect I.M. Pei are among those on the market
But some market observers doubt such property will find buyers amid a glut in supply of high-end condominiums and a recent downturn in US stock markets that saw the Dow Jones Industrial Average plunge 3,000 points on Monday for its biggest ever one-day drop.
A town house belonging to the late I.M. Pei, the famed architect of the Louvre museum in Paris and the Bank of China Tower in Hong Kong, is among those that have gone on the market recently. Pei’s four-bedroom town house, perched above Manhattan’s East River, is on sale for US$8 million.
“The New York market is experiencing oversupply right now, and this is in part because of the tremendous amount of development that took place after the financial crisis in 2008,” said Ilyse Dolgenas, special counsel at law firm Withers’ New York real estate team. The glut, however, is in high-end luxury condos rather than in those priced at the US$2 million to US$5 million range, she added.
Global stock markets, including those in the US, have been experiencing wild swings and volatility over the past week as the pandemic accelerate in Europe and the US. It has infected nearly 180,000 people in more than 130 countries and claimed over 7,120 lives as of early Tuesday. As the outbreak threatens to send the global economy into recession, central banks from China to the US have injected liquidity and reduced interest rates to improve market confidence.
Earlier this month, the Chinese owner of Waldorf Astoria started the sale of 375 luxury condominium units. The upper floors of the storied hotel are being converted into residential units. The entire property, which will include the 375-key hotel, will welcome residents and guests in 2022.