Manhattan real estate breaks new price records

Reports of the demise of luxury real estate in Manhattan may have been greatly exaggerated — or perhaps just early.

Manhattan real estate prices set a new record during the first quarter, with the average price of an apartment topping $2 million for the first time in history, according to a report from Douglas Elliman and Miller Samuel Real Estate Appraisers & Consultants. The average price per square foot also set a new record, hitting $1,713.

Granted, sales have slowed. Though the total number of sales, 2,877, grew 8 percent compared to the same quarter last year, they slipped 3 percent compared to the fourth quarter of 2015. On a year-over-year basis, the number of sales has fallen for the past seven quarters. Meanwhile, listing inventory increased 5 percent over the year.

This apartment, at 101 Central Park West, was the most expensive sale recorded for Manhattan during the first quarter, at $35.3 million.

Yet housing experts say that Manhattan’s real estate market largely held up given the volatile stock market and slowing overseas growth. While the very top of the market — apartments priced at $5 million or more — has slowed, the core market of apartments priced at $1 million to $5 million remains strong.

“What you have is the super-luxury high-end of the market, which started changing a year ago and is clearly slowing,” said Jonathan Miller, president of Miller Samuel. “But in the rest of the market, demand is still elevated.”

The number of closings for new developments nearly doubled, skewing overall prices higher. Many of those closings were for apartments sold more than a year ago for buildings that are just now being completed. Yet Miller said he doesn’t expect a “condo cliff” where sales and prices suddenly drop off as the previous deals pass through the system.

“If we see anything it will be more gradual,” he said.

Despite widespread fears about a flood of new inventory coming into the market, inventory of new development fell 44 percent over the same period last year.

And Miller said overall inventory of resale apartments — which make up the bulk of the market — is about 10 percent below historical norms. About half of all resales are selling for at or above the listing price.

“The resale market is still plagued by limited inventory,” he said.

The most expensive apartment sold during the quarter was a 7,000-square-foot, five-bedroom home at 101 Central Park West, which went for $35.3 million. It was listed by Randall Gianopulos and Serena Boardman at Sotheby’s International Realty.

Housing Project Launch Prices Drop up to 20% in 3 Metro Cities

Mumbai: Developers in certain micro markets of metros like Delhi-NCR, Mumbai and Bengaluru witnessed a drop of 4-20 per cent in launch prices of residential projects in 2015 over the previous two years, according to a report by property consultant Cushman & Wakefield.

Metropolitan cities of Delhi-NCR, Mumbai and Bengaluru recorded a drop in launch prices in high development activity markets of these cities, the C&W report said.

As per the study, new residential projects in select micro markets are cheaper by 4-20 per cent on average weighted basic sale price over the last two years.
Housing Project Launch Prices Drop up to 20% in 3 Metro Cities: Report
The report tracks the development activities in locations of Dwarka Expressway, New Gurgaon Southern Peripheral Road Sohna, Noida Expressway and Noida Extension in NCR, Thane, Goregaon and Malad in Greater Mumbai, and south-west and southern sub-markets in Bengaluru.

The suburban location of Mumbai’s Goregaon registered the biggest decline in average weighted basic sale price at 20 per cent, where the per square foot rate averaged at Rs. 10,500 per square foot in 2015, followed by Thane which saw an 18 per cent decline.

Southern Peripheral Road in Gurgaon also saw a decline of 10 per cent in average base selling price of new launches, as compared to 2013.

In contrast, most of the sub-markets in Bengaluru witnessed steady launch prices, except in far south and western sub-markets, where average new launch prices in 2015 declined by 2-7 per cent, as compared to 2013.

South East micro market of Bangalore was an exception to the rule, where both the average weighted basic sale price (19 per cent) and the average ticket size (18 per cent) of the apartment saw an increase.

Delhi-NCR witnessed launches of 23,000 units in 2015, out of which 79 per cent were launched in the locations of Dwarka Expressway, New Gurgaon Southern Peripheral Road Sohna, Noida Expressway and Noida Extension in NCR. Half of the total new launches in 2015 were in the mid-segment, the report said.

Mumbai, on the other hand, witnessed a 37 per cent decline in residential unit launches, totalling 15,735 units, from the corresponding period last year with Mulund, Thane, Goregaon and Malad accounting for nearly 51 per cent of the total launches during 2015.

The new launches in 2015 have been smaller in configuration, therefore, with reduced base selling prices and smaller units, the ticket size or the cost per apartment has also seen a decline in these key markets, the report said.

A majority of the new launches (83 per cent) were concentrated in the mid-segment. While new launch prices have remained stable across most sub-markets, developers in the far south reduced the average weighted basic sale price in the mid-segment by 7 per cent, to remain competitive.

Delhi-NCR New Home Launches Down 14% in 2015: Property Consultant

New Delhi: Launches of new homes fell 14 per cent in the Delhi-NCR market last year to nearly 23,000 units due to a slowdown in demand, according to a report by Cushman & Wakefield.

The launches of new homes fell from 26,802 units in 2014 to 22,979 flats in 2015, the property consultant said in its report.

Half of the total new launches in 2015 were in the mid segment at about 12,400 units. About 79 per cent of the units were launched in the locations of Dwarka Expressway, New Gurgaon, Southern Peripheral Road, Sohna, Noida Expressway and Noida Extension in the National Capital Region.

Housing prices of newly-launched projects fell by up to 10 per cent in Delhi-NCR last year compared with 2013 rates.

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“With a view to attract buyers, developers have tried to bring down the ticket size of their offerings by either reducing unit sizes or reducing capital values or both. Such efforts from developers have been witnessed across submarkets especially in Southern Peripheral Road, New Gurgaon and Noida,” C&W said.

In 2015, the Dwarka Expressway and Southern Peripheral Road saw the largest decline in launch prices in the NCR of 10 per cent as compared to basic selling price of 2013.

On the Noida market, the property consultant said the submarkets of Noida witnessed softening of capital values of new launches, while registering a marginal increase in the average size of a 2-bedroom flat.

The capital values of new launces have softened by 4-5 per cent since 2013. Average size of a 2BHK increased marginally leading to stable or increased ticket sizes.

“As a result, the market, which is primarily end-user driven and has relatively lower capital values have witnessed almost stable or increase in ticket size of 2BHK units.”

Noida Expressway is fast emerging as a mid-segment residential destination with presence of basic infrastructure which attracts end-users, while Noida Extension has established itself as the affordable residential region in Delhi-NCR with one of the lowest capital values, the report noted.

On the southern peripheral road in Gurgaon, the primary prices in the submarket has softened by 10 per cent compared to 2013, while the apartment size offered by developers in recent projects also trimmed to around 1,200 square feet from earlier 1,400 square feet making it slightly affordable for end-users.

Hyderabad Beats Realty Slowdown as Housing Sales Rise 67%: JLL India

New Delhi: Housing sales in Hyderabad rose 67 per cent to 7,000 units during the period between October 2014 and September 2015 on improved demand from both end-users and investors after formation of Telangana, says a report by property consultant JLL India.

Housing sales stood at 7,000 units during the fourth quarter of 2014 to the third quarter of 2015 as against 4,200 units in the year-ago period, JLL India said.

“After creation of new Telangana state and Hyderabad’s status as joint capital, the end-users demand as well as investors sentiment has improved, resulting in an increase in sales,” JLL India national director-research Ashutosh Limaye said when asked about the rise in sales despite overall slowdown in the real estate market.

Going forward, he said, sales would remain robust with a reasonable price rise.

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“As the city moved past the global financial crisis and later, the formation of Telangana, developers are no longer holding back launches and buyers are also returning to the market,” the report said.

JLL said there has been a significant increase in the number of units launched. In the last three quarters alone, launches have picked up strongly, increasing by more than 1.5 times since last year.

“Moreover, improved economic activity seen during the last six months has led to a better market sentiment. Corporates are also coming in as the political environment has improved,” it added.

The capital values have also witnessed a significant rise in Hyderabad of about 5-10 per cent year-on-year, after many years of seeing sub-5 per cent rate of appreciation.

The city is likely to witness further price rise going forward, given its good quality of life and state-of-the-art infrastructure, the consultant said.

“As the government goes all out to bring investments, heightened economic activity can be expected to further bolster the residential realty market,” the report said.

Tata Housing May Tie Up With Amazon for Online Property Sale

New Delhi: Realty major Tata Housing is in talks with online marketplace Amazon India for marketing of its properties, according to sources.

Tata Housing, the real estate arm of the Tata group, sold over 2,000 apartments through online platform in the last two years.

Tata Housing is in talks with Amazon India to sell its portfolio of premium and luxury properties across eight cities, they said.

The company spokesperson declined to comment.

The Mumbai-based developer started selling flats online from December 2013 through Google’s ‘Great Online Shopping Festival’. It had partnered with Snapdeal and Housing.com as well for online property sales.

Tata Housing May Tie Up With Amazon for Online Property Sale: Report

Tata Housing has recently sold luxury unit in its project at Kasauli to an NRI customer for Rs. 5.5 crore online.

With real estate facing a huge slowdown for the last 2-3 years leading to huge delays of about 7-8 years in project delivery, real estate players are increasingly taking the online route to sell their flats at a discount.

Even, the country’s largest realty firm, DLF, had tied up with Snapdeal last year to sell flats online.

On Thursday, online marketplace Snapdeal launched a week-long real estate shopping festival offering properties in a price range of Rs. 20 lakh to Rs. 5 crore.

Established in 1984, Tata Housing is a closely held public limited company and a subsidiary of Tata Sons. It is developing 70 million sq ft under various stages of planning and execution and an additional 19 million square feet is in the pipeline.

Oberoi Realty Sells 645 Housing Units in Q3 for Rs. 1,775 Crore

New Delhi: Oberoi Realty sold 645 housing units for about Rs.1,775 crore in the third quarter of this fiscal year, largely in its newly-launched residential project at Borivali in Mumbai.

The Mumbai-based developer sold 645 units, covering nearly 10.24 lakh square feet, for Rs. 1,774.39 crore, according to an analyst presentation.

Of the total sales bookings achieved in the quarter ended December, Oberoi Realty sold 619 units in newly-launched project Sky City for Rs. 1,567.15 crore.

The company said it launched three towers on October 30, 2015. “619 units booked, value about Rs. 1,567 crore till December 31, 2015…4th tower launched on 15th January, 2016…Work commenced at site,” the presentation said.

Oberoi Realty in October had said that it expects to earn a revenue of Rs. 10,000 crore from this 25-acre project comprising 10 towers of 60 storeys each.

The company’s collection stood at Rs. 524.49 crore during the third quarter of fiscal year 2015-16, of which about 290 crore was from the Sky City project.

Although the real estate market is facing a huge slowdown for last 2-3 years, housing sales have picked up in a few cities like Mumbai, Hyderabad and Bangalore.

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Last week, Oberoi Realty reported a more than two-fold jump in consolidated net profit to Rs. 209.35 crore for the quarter ended December on higher sales. Its net profit stood at Rs.79.23 crore in the corresponding period a year ago.

Total income increased to Rs. 790.33 crore for the October-December quarter of fiscal year 2015-16 from Rs. 219.6 crore in the corresponding period of the previous year, the Mumbai-based developer said in a filing to the BSE.

The company has developed about 40 projects at strategic locations across the Mumbai skyline aggregating about 9.18 million square feet. Another 20.61 million square feet is under construction.

Shares in Oberoi Realty, on Friday, ended 3.28 per cent lower at Rs. 249.10 apiece on the BSE, whose benchmark Sensex index finished down 1.28 per cent.