New York leads way in boom in real estate
Updated: 2014-11-24 11:52
By Paul Welitzkin in New York(China Daily USA)
Real estate investment in the United States, especially in New York City, is enjoying a banner year, said panel members at the Asian Financial Society's (AFS)) Summit 2014 in New York.
Marcella Fasulo, senior vice-president in CBRE's Investment Properties/Institutional Group team, said at the summit on Nov 21 that US real estate investment totaled $286 billion through the third quarter of this year, up 77 percent from $161 billion a year earlier.
In New York City, the improvement is even more pronounced. Investment was $36 billion at the end of the third quarter of 2014, more than one-and-a-half times the $14.6 billion in the same period in 2013.
"New York has a small amount of 100% fair market multi-family properties and therefore when sold these tend to produce higher sale prices," said Fasulo.
Jeffrey Dvorett, executive vice-president and head of development for Kuafu Properties, agreed with Fasulo's assessment of the New York market.
Dvorett said advantages for New York real estate now include strong demand and limited supply. Potential risks include rent regulation and legislative and judiciary uncertainty.
Panel members said interest rates remain attractive for real estate investment and even if the Federal Reserve moves to increase rates, it will come in measured steps which shouldn't deter the market.
The AFS Summit, held at the Bank of America Tower in New York on Nov 21, explored economic, industry and market topics featuring professionals engaged in a free exchange of ideas.
The Asian Financial Society is celebrating its 30th year as a non-profit organization of business people.
Qin Wang of the Kiski Group has been a member since 2008. He said AFS provides a key platform for Asian professionals.
"It offers a great opportunity for Asian professionals to meet and connect while advancing their careers," he told China Daily. "Our goal is also to serve as a mentor for those just starting out."