Buying in New YorkThe USA property market may be troubled but there is a bubble over New York city, protecting values in the metropolitan area.
One of the reasons is an acute shortage of rental stock in prime Manhattan locations.
Combined with the weak dollar, this makes the city attractive to overseas investors. While expensive trophy homes and starter apartments are driving the New York market, all segments continue to buck the trend.
"It's a phenomenally buoyant market," says Kevin Harmon of Savills HOK who is handling Irish sales of a new hotel and apartment development on Wall Street, New York's financial district.
The former city headquarters of JP Morgan Chase Bank at 75 Wall Street is being refurbished as a contemporary hotel by the Hyatt Hotel Group, with 251 hotel suites on the lower floors and 349 private condominiums on floors 19 to 43.
Prices range from $615,000 (€447,691) for a 41sq m (439sq ft) studio, $840,000 (€611,480) for a 61sq m (653sq ft) one-bed unit, up to $1.64 million and $2 million (€1.19m and €1.46m) for two and three-bedroom apartments of 131 and 157sq m (1,411-1,692sq ft).
They will come fitted out to a high standard, with oak flooring, contemporary equipped kitchens, air conditioning and state-of-the-art bathrooms. A 24-hour concierge, gymnasium and rooftop party room will be provided and residents can avail of hotel facilities such as room service, housekeeping and valet parking.
Because of its location close to Ground Zero, 75 Wall Street will benefit from significant property tax reductions for 15 years, with no tax payable in years two to nine - a huge asset, as property taxes are high in Manhattan.
Management fees will work out at around $500 (€364) a week for a studio apartment.
Owners can expect a monthly rental income of about $3,000 (€2,184) for a one-bedroom apartment, say the selling agents.
The developers are a consortium composed of the Hakimian Organisation, Peykar Bros Realty and Gorjian Properties.
The Hyatt Andaz is designed as a new breed of environment-friendly hotel. It will have no reception desk; hosts with hand-held computers will greet guests. A designated bellhop will be assigned for apartment owners.
Anne Marie Moriarty of New York-based Corcoran Real Estate will handle rentals for owners. With less than half of one per cent of its rental stock available at any one time in Manhattan, good tenants are easy to find, says Kevin Harmon of Savills Hamilton Osborne King.
Completions are scheduled from the end of 2008 into 2009.
