New Yorkers’ Wealth Surges

One factor that has a huge effect a country’s economy and the standard of living of individuals within it is wealth. This has become evident among New Yorkers, whose level of wealth has grown to the point of affecting the price of real estate market in Manhattan. In the past, high prices of real estate were attributed to foreign investors. More recently however, New Yorkers, with an average yearly income of one million dollars, have really started to impact the city’s real estate market. So while foreign investors are curtailing investment in NYC real estate because of the global economic crisis, New York City residents are stepping up to fill the void.

Data collected from tax payments reveal that the number of New York residents earning a million dollar or more per year has risen significantly since 2012. Not only has the number increased, it is far greater than the income of residents of neighboring cities. In fact, New York City is home to more than half of the millionaires in the state, which is even more impressive given that New York State is ranked second among US states with 12 percent of the entire country’s millionaires. Only California has a greater share at 15 percent of these earners.

One effect of this increase in the wealth of city residents has been a tremendous boost to the local economy, increasing transactions for both services and products. Another effect has been the push it has given the prices of median condos, which are now at record levels. 

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A New Dawn for New York Thanks to Brexit

For decades, investors have been attempting to choose between London and New York as the best location to invest their resources, with each city being one of the strongest real estate markets in the world. It has often been a toss-up between Canary Wharf or Wall Street, Islington or Brooklyn Heights, Kensington or the Upper East Side. But now, thanks to Brexit, the balance has tipped in favor of New York City, which is now seen as more stable compared to London due to the uncertainties surrounding the British economy.

The superrich tend to keep well informed regarding world affairs in order to be sure their money is in safe hands. Ever since Britons began agitating for an exit from the EU, investors have been looking for investment alternatives to London real estate. Various brokers and lawyers in the residential real estate industry have been receiving calls from billionaire investors in countries all over the world who are planning to shift their focus from London to New York. Some who already had expensive real estate in London have been selling off those residential estates and buying new ones in New York.

In the past, both cities have been in sharp competition in the real estate market. Investors are now seeing uncertainty surrounding Britain’s economy, and many are perceiving New York to have an edge over London, as there is no safer place than New York right now - the wealthy have been investing there for decades and understand the market perfectly. New York has been experiencing a slowdown in the luxury real estate market recently due to an oversupply of high end residences and things have been going badly enough for developers here that some have had to attach promotions in order to sell their new condo properties. But with the current situation in Britain, London is sure going to lose ground to New York as a prime location for property investment as Brexit is leading to predictions of a 5 to 15 percent drop in London real estate prices in the next few months. The departure of Britain from the European Union is a blessing in disguise for New York City real estate and for those who are ready to take advantage of it.

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Sotheby's International Realty® Brand to Target China's Wealthy with New Juwai.com Alliance

MADISON, N.J., Sept. 7, 2016 /PRNewswire/ -- Sotheby's International Realty Affiliates LLC has announced an alliance with Juwai.com that enables the luxury real estate brand to generate Chinese buyer interest on one of the world's most prominent real estate websites with over two million monthly visitors. As a truly international brand, Sotheby's International Realty now has the most global representation on Juwai.com, displaying luxury listings from 65 countries and territories.

 Chinese Wealth

Because of its rapid economic growth, the number of Chinese dollar millionaires is expected to reach 2.3 million by 2020, a 74 percent increase compared to today.[i] Largely due to China, Asia was responsible for 70 percent of all new billionaire wealth in 2015.[ii]

 Chinese Real Estate Buyers

 China is already the second-largest source of visits to sothebysrealty.com, only after the United States, and accounts for one out of every 10 visitors.

Chinese investors favor real estate as an asset class. Chinese purchasers acquired at least US$350 billion of U.S. real estate between 2010 and 2015.[iii] 69 percent of Chinese purchase on an all-cash basis.[iv] Between 2009 and 2015, Chinese buyers went from accounting for 10 percent to 28 percent of all foreign residential real estate acquisitions in the U.S. In the same period, its annual investment level increased more than nine-fold.[v]

Looking forward, Chinese buyers are expected to continue their international real estate purchasing spree. The best estimate is that they will spend at least US$218 billion on existing U.S. real estate between 2016 and 2020[vi] – with investments in the rest of the world on a similar scale.

 Details of the Alliance

 The Sotheby's International Realty brand alliance with Juwai.com includes the following components:

·         Listing display: Sotheby's International Realty property listings will appear on Juwai.com and in its real estate search results.

·         First responders: Juwai.com's Chinese-language team is located in mainland China so they can respond to consumer inquiries in real time, translate the inquiries into English and forward them to the Sotheby's International Realty sales associate who has the listing.

·         Brand page: A Sotheby's International Realty brand overview page carries information about the brand, a contact form and the network's listings – all in one place.

·         Banner advertising: Sotheby's International Realty banner ads will run on the Juwai.com homepage, promoting the company's new brand page and listings to Juwai.com's audience.

Quotes

 "We are constantly looking for opportunities to expand globally by adding new distribution opportunities that showcase properties to affluent consumers in key growth markets. The alliance with Juwai.com achieves that by giving us better access to a market that is already one of our most important, and which promises great future growth."

 "From now on, our listings will also be promoted on Juwai.com. Having Juwai.com's team respond to leads in timely fashion overcomes the cultural and time-zone challenges of working with overseas buyers. That's a huge competitive advantage to our affiliates and independent sales associates, and to their clients."

 "One of Juwai.com's key advantages is that it is hosted on both sides of China's internet firewall, so its listings are visible online both within China and outside of China." -- Wendy Purvey, chief marketing officer, Sotheby's International Realty Affiliates LLC

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