\nThe sinking Euro hasn\u2019t seriously derailed foreign appetite for premiere US real estate but the next few weeks will reveal whether the Euro zone crisis will eat away at demand, according to experts.\n<\/p>\n
\n\u2018We thought our foreign buyers would flee, but they haven\u2019t as yet,\u2019 said Pamela Liebman, president and chief executive of The Corcoran Group told the Reuters Global Real Estate and Infrastructure summit in New York.\n<\/p>\n
\n\u2018It still feels as good as it did before the Euro crisis but we\u2019re waiting to see and it\u2019s nowhere near what it was with the condo boom,\u2019 Liebman added.\n<\/p>\n
\nDelegates heard that the mix of foreign buyers has already shifted over the past two years.\n<\/p>\n
\nItalians, South Americans, Southeast Asians, Chinese and Russians are in while the Irish and Koreans are out.\n<\/p>\n
\nForeign buyers are looking for a safe and secure place to put their money and they are finding that in the best known US addresses, according to Jay Koster, president of Americas Capital Markets for Jones Lang LaSalle.\n<\/p>\n
\n\u2018There is tremendous appetite especially if the address says 5th Avenue or Park Avenue or Madison Avenue,\u2019 said Koster, referring to New York’s glitzier streets. Foreigners are \u2018buying long term value or buying stability. They\u2019re buying Pennsylvania Avenue in D.C. and they\u2019re buying Rodeo Drive in the Beverly Hills area of Los Angeles. It\u2019s broader than Manhattan, but still very finite demand.\u2019\n<\/p>\n
\nCurrent buyers are typically wealthy and looking to buy for families for the long term rather than to flip. \u2018The kids want to use the apartment, they are in their 20s, the parents want to use it, and maybe the grandparents will use it. They\u2019re not going to rent it out and they plan on holding it for a long period of time,\u2019 explained Liebman.\n<\/p>\n
\nWhat is missing is brokers representing Irish, South American and Korean investors in purchases of multiple units, at times entire buildings. \u2018What we don’t see is people coming in any more to these new these developments where they buy 10 apartments. These are all one off deals. In some cases somebody might look to buy two or three apartments,\u2019 she added.\n<\/p>\n
\nWhile the demand is still there, the supply isn\u2019t always sufficient, the conference heard. \u2018A lot of foreigners want to buy a two bedroom apartment with nice views in a fully serviced building and there\u2019s just not that much out there. You\u2019d be shocked at how little is out there to satisfy some of these needs,\u2019 said Liebman.\n<\/p>\n
\nKoster said foreigners are willing to stretch their limits for the sake of getting sought-after addressees. \u2018There are many cases where they willing to pay up for the best assets and stretch their parameters rather than buy in the middle of the country,\u2019 he explained.\n<\/p>\n
\nCorcoran has been placing brokers globally to capitalize on foreign demand for properties in New York City, where new building potential is limited and average prices are about 20% below their peak. One Corcoran broker moved recently to China, another to Italy and one travels to Brazil and Argentina every eight weeks, Liebman said. \u2018The buying power of the Euro has changed but the prices have changed too,\u2019 said Liebman.<\/p>\n","protected":false},"excerpt":{"rendered":"
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