THIS BYSTANDER IS not surprised to read a Reuters report saying that when it comes to buying apartments in Manhattan Chinese buyers are outspending all other foreign buyers for the first time. The news agency polled leading estate agents in the city who were unanimous in their view, though divided as to whether Russians, other Europeans or South Americans were the new number 2.
Chinese buyers have been pouring money into U.S. property ever since the housing market collapsed in 2008. Even though prices fell less in New York City than elsewhere in the country, and the price for luxury apartments hit a record in the first quarter, the city still appears a bargain compared to China’s big cities and other favored havens for wealthy Chinese such as Hong Kong and Singapore. In London, where Chinese have been the leading foreign buyers since last year, luxury apartments are selling for twice the price per square foot of New York’s.
One broker says Chinese buyers in New York City typically buy in the $1million-$5 million range, but will often buy two or three properties at a time. This has driven a boom in new construction in New York. There is an estimated 2 years supply of unsold luxury apartments and more coming on the market, which leads some to wonder if the rate of price rises may tail off.
Really well heeled Chinese, Reuters says, are flocking to One57, a luxury skyscraper on Central Park designed by Pritzker Prize-winning French architect Christian de Portzamparc. A three bedroomed apartment there starts at $19 million; a whole floor could cost $55 million.
As well as providing a bolt hole for their cash, Chinese buyers have been particularly attracted to cities where there a leading universities. Most wealthy Chinese want their children to attend an overseas college, surveys have found. New York is well situated with Columbia and New York University both having large campuses in Manhattan.