Chinese investors and developers are flooding the local real estate market at never-before-seen levels, buying some of New York City’s most iconic buildings at prices that local buyers aren’t willing to pay.
“Insane is definitely the right way to characterize it,” said real estate attorney Edward Mermelstein, who’s worked on projects with Chinese investors. “New York has become the favorite place for the Chinese to deploy their capital.”
So far this year, the Chinese have forked over more than $3.8 billion on Manhattan real estate, a more than threefold increase over what they spent in all of 2014.
The average price of units in these new buildings is expected to reach a record $5.9 million this year, according to a report released Tuesday from CityRealty.
“It’s not just going to break all records in terms of price, it’s going to be the first to hit those records within the shortest period of time,” said international real estate attorney Edward Mermelstein, who completed the most deals at 15 Central Park West.
Buyers have also poured more funds into New York real estate over the past two months, says, Edward Mermelstein, a partner at law firm Rheem Bell & Mermelstein who advises Russian investors. “Many of our clients who are active in commercial real estate increased their appetites,” he says. “Now the indication is that their bet was correct.”