History repeating itself?

David Goldsmith

All Powerful Moderator
Staff member
5 years ago Extell elected to market it's project 1 Manhattan Square exclusively in Asia for the first 6 months before opening a New York sales office. It doesn't appear to have worked out that well since 5 years later the just barely appear to be reaching the 40% sold mark.

So imagine my surprise, especially given that Asian investment in NYC Real Estate only seems to have further waned, to see this article in Time Out:

After several rounds of changing plans and postponing opening sales going back to 2017:

The Macklowe sponsored condominium announced back in December of last year it had ditched Core in favor of Compass even though Core had allegedly "presold" 10% of the units to Asian buyers.

So now 7 months later there still doesn't appear to be a single unit officially listed (as per StreetEasy), or a New York sales office, and they appear to be pushing interested parties to contact a sales office in Hong Kong?

Will this strategy work out better for Macklowe than it has for Extell?
 

inonada

Well-known member
If your sales strategy revolves around selling to foreign buyers, it probably means you know locals don’t want to live there / at that price. You might think this should mean the project should not be developed, but developers have a strong incentive to develop: without it, they don’t have a business.
 

David Goldsmith

All Powerful Moderator
Staff member
If your sales strategy revolves around selling to foreign buyers, it probably means you know locals don’t want to live there / at that price. You might think this should mean the project should not be developed, but developers have a strong incentive to develop: without it, they don’t have a business.

Foreign Purchases of U.S. Homes Fall to New Low​

Foreigners bought $54.4 billion in U.S. residential real estate in the year ended in March, down 27%, according to NAR report​

 
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