And some properties bought during the housing slump may be undervalued. Yet he cautioned that pricing homes based on the stratospheric prices for some recent trophy sales—like the $95 million penthouse sold at 432 Park Ave.—may be optimistic.
“It’s fuzzy housing logic,” he said. “You’re coming up with a value based not on a meeting of the minds between a willing buyer and seller but based on product that is coming on the market for much higher.”
Consider the penthouse at Walker Tower. The apartment at 212 W. 18th St., which is nearly 6,000 square feet, sold last year for $51 million, which was a record for downtown at the time. Now it’s back on the market for $70 million.
Broker Kamali Chandler of Sotheby’s International Realty, who has the listing, said there has been no improvement or major changes to the apartment since it was last sold. But she said stronger global demand for safe stores of wealth have made New York even more attractive. She said strong demand in Chelsea from tech firms also has boosted demand.
“You’re buying safety and security,” she said. “What’s happening around the world has made New York City a top choice for investors.”
A trophy penthouse in Soho is also being listed at a higher sale price. The apartment, at 94 Thompson St., sold in 2012 for a little more than $10 million. Now it’s on the market for $19.8 million—nearly double the price three years ago.
Even Rupert Murdoch is getting into the flipping game. Last year, he bought the top four floors of One Madison for $57 million. He started a massive, top-notch renovation that has cost millions and is nearing completion. But now he’s listing three of those floors for $72 million.
Written by Robert Frank of CNBC