Weekly News (November 1, 2017)

1. NYC is difficult to be Amazon’s 2nd HQ

  • 238 city’s proposals from 54 States
  • Tough competition: NYC → Probability 14:1 (Manhattan Mid-town West, Lower Manhattan Financial District, Queens LIC, Brooklyn Triangle)
  • Probability #1 → Atlanta, GA (3:1)
  • Boston, MA / Austin, TX → 7:1

2. New Luxury Condo on 31st Street in Manhattan, NY

  • 30 East 31st Street between Madison and Park Ave: 40 story building
  • Developer: Extine Developer (Eric Extine) → To build not just glass tower, but building conformed with neighbor
  • 13 of 1 Bedroom unit → $1.65 Million (866 SF), 2 Bedroom unit (1,677 SF) → $3.5 Million
  • Top floor: 2 Bedroom Duplex style Penthouse (3,354 SF) → $12 Million
  • Will open lunching event on 11/01 → Construction will be completed in Spring 2019

3. New Jersey tallest condo building in Jersey City: ’99 Hudson Residential Tower’ 

  • 79 stories / 900 FT / 781 units (Goldman Sachs Building: 781 FT)
  • Currently 16 floors up → Complete in 2019
  • Architects: Perkins Eastman / Developer: China Overseas America, Inc.
  • Marketing: Marketing Directors
  • Price: $1400 / SF → 64 % of Manhattan condo price (1 BR: Starts $889,000, 2 BR: Starts $1.5 Million)
  • Developer purchased the lot at $68 Million from Harts Mountain Industries in 2013
  • Ask for internal sales ‘Helena Liu’ (C Land Realty New York member)

4. Tax Reform hits Homeowners (by Lawrence Yun, NAR chief economist) 

  • If Tax reform passed, Home owners will hit
  • Homeowners already pay 80~90% of all federal income tax in any given year
  • The plan to double the standard deduction ($12,000 to $24,000) → Fewer homeowners will use mortgage interest deduction → Only wealthy people will use interest deduction
  • Big family will loose more because deduction of $4050 per person would go away
  • Renters → Standard deduction make them better off → More renters (Typical wealth of renters has fallen from $5,900 to $5,100 since 2010 while home owning households have seen their wealth jump from $192,800 to $231,400)
  • Congress must not forget sustainable and successful homeownership should be encouraged
  • Homebuilder group opposes new tax reform
  • NAR reported tax reform would lower home values by 10% overall

5. Amazon will start Pharmacy business? In-home delivery?

  • Pharmacy industry → $421 Billion
  • Amazon obtained Pharmacy license in 12 different States (New Jersey, Connecticut, Arizona, Michigan, etc.)
  • They will start as early as next month
  • Expect not that easy due to complicated payment option with insurance, etc.
  • In-home delivery will start 11/08 by ‘Secure-lock Service’
  • Wanted customers will install Key In-Home Kit ($249) → Delivery man will open the door/deliver the goods in 5 min → One time secure code will be used → After delivery, One time code cannot be used, change to original code
  • NYC, LA, etc. in about 40 cities will be available

6. Commercial RE market is slowing down

  • Value gap between buyers and sellers are widen
  • Office building transactions in NYC are relatively better than other sectors, but the value gap is about 10%
  • Commercial RE Market has been good for past 8 years → Thought: will come to end soon
  • According to WSJ, REITS sold $46.7 Billion this year ($71 Billion last year)
  • According to CBRE, demand for commercial rent stays flat (Building owners think too optimistic)

7. Reasons to lower the house price

  • According to Recent CBS report, the following reasons will cause to lower house price
    Murder/accidental death/criminal in the house (ex. Sandy Hook incident)
    Haunted house/ill spirited house (in NJ, no obligation to disclose) → Often the court favors to buyer who claimed seller did not disclose
    Near cemetery (NAR reports about 12% lower)
    Near funeral house (NAR reports 6.5% lower)

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