Sunday, July 24, 2016

Condo Units in Trump-Brand Buildings Have Lost Premium Pricing Power

Daniel Goldstein reports:
A market analysis of Trump-brand condominium units in the first five months of 2016 as compared with those same months a year earlier by Seattle-based real estate listing firm Redfin showed that before Trump announced his candidacy for the Republican nomination, Trump units outside of Manhattan had a sale-price premium of as much as 6.8% versus apartments in other luxury buildings. The units were compared with similar non-Trump-brand models based on location, square footage and number of bedrooms. On a per-square-foot basis, that’s a premium of 9%, or $97 a square foot.

Redfin noted that, in the early months of 2015, units in Trump condominium buildings were typically listed 1.6% higher than comparable listings. In early 2016, the Trump brand, at least outside of the red-hot Manhattan market, did not command that same level of respect in terms of price.

“Trump condos have lost the price advantage they enjoyed before the campaign and are starting to sell similarly to comparable condos,” said Redfin’s chief economist, Nela Richardson, whose firm looked at more than 160 Trump unit sales in nine markets, including big-city markets like Chicago and popular vacation spots like Hollywood Beach, Fla.; Las Vegas; and Honolulu...

Trump is still king of the New York market, where his dozen-plus condo projects command a healthy premium versus all rivals in the city and the surrounding area, according to CityRealty, a Manhattan-based research firm. In 2016 sales prices for Trump-brand condo units in Manhattan averaged $1,974 a square foot, compared with $1,873 a square foot for all other units, a 5% premium advantage, CityRealty said. Trump enjoyed a similar 5% edge in Manhattan in 2015, said Gabby Warshawer, CityRealty’s director of research.

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