Best of the Week
Most Popular
1. TESLA! Cathy Wood ARK Funds Bubble BURSTS! - 12th May 21
2.Stock Market Entering Early Summer Correction Trend Forecast - 10th May 21
3.GOLD GDX, HUI Stocks - Will Paradise Turn into a Dystopia? - 11th May 21
4.Crypto Bubble Bursts! Nicehash Suspends Coinbase Withdrawals, Bitcoin, Ethereum Bear Market Begins - 16th May 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.Cathy Wood Ark Invest Funds Bubble BURSTS! ARKK, ARKG, Tesla Entering Severe Bear Market - 13th May 21
7.Stock Market - Should You Be In Cash Right Now? - 17th May 21
8.Gold to Benefit from Mounting US Debt Pile - 14th May 21
9.Coronavius Covid-19 in Italy in August 2019! - 13th May 21
10.How to Invest in HIGH RISK Tech Stocks for 2021 and Beyond - Part 2 of 2 - 18th May 21
Last 7 days
Overclockers UK Custom Built PC 1 YEAR Use Review Verdict - Does it Still Work? - 16th Oct 21
Altonville Mine Tours Maze at Alton Towers Scarefest 2021 - 16th Oct 21
How to Protect Your Self From a Stock Market CRASH / Bear Market? - 14th Oct 21
The Only way to Crush Inflation (not stocks) - 14th Oct 21
Why "Losses Are the Norm" in the Stock Market - 14th Oct 21
Sub Species Castle Maze at Alton Towers Scarefest 2021 - 14th Oct 21
Which Wallet is Best for Storing NFTs? - 14th Oct 21
Ailing UK Pound Has Global Effects - 14th Oct 21
How to Get 6 Years Life Out of Your Overclocked PC System, Optimum GPU, CPU and MB Performance - 13th Oct 21
The Demand Shock of 2022 - 12th Oct 21
4 Reasons Why NFTs Could Be The Future - 12th Oct 21
Crimex Silver: Murder Most Foul - 12th Oct 21
Bitcoin Rockets In Preparation For Liftoff To $100,000 - 12th Oct 21
INTEL Tech Stock to the MOON! INTC 2000 vs 2021 Market Bubble WARNING - 11th Oct 21
AI Stocks Portfolio Buying and Selling Levels Going Into Market Correction - 11th Oct 21
Stock Market Wall of Worry Meets NFPs - 11th Oct 21
Stock Market Intermediate Correction Continues - 11th Oct 21
China / US Stock Markets Divergence - 10th Oct 21
Can US Save Taiwan From China? Taiwan Strait Naval Battle - PLA vs 7th Fleet War Game Simulation - 10th Oct 21
Gold Price Outlook: The Inflation Chasm Between Europe and the US - 10th Oct 21
US Real Estate ETFs React To Rising Housing Market Mortgage Interest Rates - 10th Oct 21
US China War over Taiwan Simulation 2021, Invasion Forecast - Who Will Win? - 9th Oct 21
When Will the Fed Taper? - 9th Oct 21
Dancing with Ghouls and Ghosts at Alton Towers Scarefest 2021 - 9th Oct 21
Stock Market FOMO Going into Crash Season - 8th Oct 21
Scan Computers - Custom Build PC 6 Months Later, Reliability, Issues, Quality of Tech Support Review - 8th Oct 21
Gold and Silver: Your Financial Main Battle Tanks - 8th Oct 21
How to handle the “Twin Crises” Evergrande and Debt Ceiling Threatening Stocks - 8th Oct 21
Why a Peak in US Home Prices May Be Approaching - 8th Oct 21
Alton Towers Scarefest is BACK! Post Pandemic Frights Begin, What it's Like to Enter Scarefest 2021 - 8th Oct 21
AJ Bell vs II Interactive Investor - Which Platform is Best for Buying US FAANG Stocks UK Investing - 7th Oct 21
Gold: Evergrande Investors' Savior - 7th Oct 21
Here's What Really Sets Interest Rates (Not Central Banks) - 7th Oct 21
CISCO 2020 Dot com Bubble Stock vs 2021 Bubble Tech Stocks Warning Analysis - 6th Oct 21
Precious Metals Complex Searching for a Bottom - 6th Oct 21
FB, AMZN, NFLX, GOOG, AAPL and FANG+ '5 Waves' Speaks Volumes - 6th Oct 21
Budgies Flying Ability 10 Weeks After wings Clipped, Flight Feathers Cut Grow Back - 6th Oct 21
Why Silver Price Could Crash by 20%! - 5th Oct 21
Will China's Crackdown Send Bitcoin's Price Tumbling? - 5th Oct 21
Natural Gas News: Europe Lacks Supply, So It Turns to Asia - 5th Oct 21
Stock Market Correction: One More Spark to Light the Fire? - 5th Oct 21
Fractal Design Meshify S2, Best PC Case Review, Build Quality, Airflow etc. - 5th Oct 21
Chasing Value with Five More Biotech Stocks for the Long-run - 4th Oct 21
Gold’s Century - While stocks dominated headlines, gold quietly performed - 4th Oct 21
NASDAQ Stock Market Head-n-Shoulders Warns Of Market Weakness – Critical Topping Pattern - 4th Oct 21
US Dollar on plan, attended by the Gold/Silver ratio - 4th Oct 21
Aptorum Group - APM - High RIsk Biotech Stocks Buy, Sell, Hold Investing Analysis for the Long-run - 3rd Oct 21
US Close to Hitting the Debt Ceiling: Gold Doesn’t Care - 3rd Oct 21
Powell: Inflation Might Not Be Transitory, After All - 3rd Oct 21
Original Oculus VR HeadSet Rift Dev Kit v1 Before Facebook Bought Oculus - 3rd Oct 21
Microsoft Stock Valuation 2021 vs 2000 Bubble - Buy Sell or Hold Invest Analysis - 1st Oct 21
How to profit off the Acquisition spree in Fintech Stocks - 1st Oct 21
�� Halloween 2021 TESCO Shopping Before the Next Big Panic Buying! �� - 1st Oct 2
The Guide to Building a Design Portfolio Online - 1st Oct 21
BioDelivery Sciences International - BDSI - High RIsk Biotech Stocks Buy, Sell, Hold Investing Analysis for the Long-run - 30th Sep 21
America’s Revolving-Door Politics Behind the Fall of US-Sino Ties - 30th Sep 21
Dovish to Hawkish Fed: Sounds Bearish for Gold - 30th Sep 21
Stock Market Gauntlet to the Fed - 30th Sep 21
Should you include ESG investments in your portfolio? - 30th Sep 21
Takeda - TAK - High RIsk Biotech Stocks Buy, Sell, Hold Investing Analysis for the Long-run - 29th Sep 21
Stock Market Wishing Away Inflation - 29th Sep 21
Why Workers Are NOT Returning to Work as Lockdown's End - Wage Slaves Rebellion - 29th Sep 21
UK Fuel PANIC! Fighting at the Petrol Pumps! As Lemmings Create a New Crisis - 29th Sep 21
Gold Could See Tapering as Soon as November! - 29th Sep 21

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

This Manhattan Condo’s $250 Million Price Tag Real Could Mean US Estate Bubble Is Ready to Pop

Housing-Market / US Housing Jun 15, 2016 - 04:39 AM GMT

By: Harry_Dent

Housing-Market I’ve been doing a lot of traveling lately. Our lease ran up at our home in Tampa many weeks ago, and my wife and I have been staying at several of our favorite spots up and down the east coast.

We’re in San Juan now, but last month I got a look at this new “billionaire’s row” that’s popped up on the south side of Central Park in New York.



Billionaire’s row is as ritzy and swanky as you can get. It’s right near the best shopping and restaurants, and you have a view of the entire park to the north from inside these buildings.

The skinny towers that line West 57th Street are altering Manhattan’s skyline. They’re far higher than any of the surrounding buildings, as new technology has allowed for these slender structures with small footprints to reach farther and farther into the sky.

Half a dozen are planned through the end of the decade, with the tallest at Central Park Tower set for 1,550 feet. That’ll make it the tallest residential building in the western hemisphere.

I was just flying a small plane over the Caribbean at that altitude, and that’s high.

I wrote about this back in February, but how can anyone not see the clear and obvious sign that this is a bubble?

And forget about Manhattan for a second – this bubble is reaching all over the globe, as Saudi Arabia and China are competing to see whose cloud-piercing tower can earn the title of “world’s tallest.”

A few years ago the story was about an 8,000 square-foot condo in New York that sold for $88 million – twice what the owner paid for it two years earlier.

Then in 2014, Manhattan first broke the $100 million mark when a condo sold just over that at the new 90-story One57 building, also on billionaire’s row.

But as they say, you ain’t seen nothing yet…

I just saw an article on CBS saying the penthouse at 220 Central Park South – a short walk away from the site for Central Park Tower – is under application to go for $250 million… the highest listing ever. The condo fees will come in at about $520,000 a year, with $675,000 in taxes.

And this isn’t just any old penthouse. Over the past few years an 8,000-10,000 square-foot penthouse might get listed for $100 million.

The one at 220 Central Park South pulled out all the stops.

At 23,000 square feet, it’s a virtual castle in the sky. It spans four floors with 16 bedrooms, 17 bathrooms and five balconies. With a $250 million price tag, that’s almost $11,000 a square foot!

In the first bubble that peaked in 2007, a very high-end apartment ran $2,000-plus per square foot.

In this second bubble, these new, super upscale condos broke $5,000-plus, easy.

Now, they’re heading toward $10,000-plus!

People can say: “So what, let the billionaires play.” But the high-end brings the broader market up with it. It’s gotten so out of hand that a typical, 1,350 square-foot condo in Manhattan now costs $2 million!

Your average one-bedroom there rents for $3,000 a month and has 750 square feet. The typical studio at 550 square feet costs $2,300. That’s insanity!

My wife has a friend that rents an 800 square-foot apartment for $5,000 a month! How many can afford to rent at that level!?

I saw a 1,600 square-foot apartment several blocks to the east side of Central Park that would rent for $12,000 a month if it weren’t for rent controls. That’s $7.5 per square foot per month. And it’s not even a scenic area.

In contrast, I’m leasing an ocean-front condo in San Juan in the hip Condado area for just $1.8 per square foot. It has a glorious view with quick access to all the great restaurants, stores and everything – and is very modern to boot.

The same condo in South Beach would cost me four times what I’m paying!

The question is – how much longer can this last?

Not long, as I see it.

I’d say this $250 million listing signals a top much sooner than later. Pretty much the only people buying these super expensive listings are foreigners trying to park large sums of cash outside their home countries.

But many of them are running into problems. Many currencies are falling versus the dollar due to falling oil prices, GDP growth and rising inflation.

The Russian ruble has fallen to record lows against the dollar earlier this year. An overpriced New York condo now costs twice as much to them.

Ditto for Brazil and most Middle Eastern countries! Brazil’s inflation rate is some 9.28%!

And at some point the Chinese government is going to clamp down on the most affluent laundering their money out of the country to avert the cash limits of $50,000 a year.

So yes, developers always overbuild.

But just like any Ponzi scheme or bubble, those who come in last have the most to lose. And this high-end, global bubble tops anything we have seen in modern history.

Remember: the bigger the bubble, the bigger the burst. Those poor billionaires won’t know what hit them.

Harry

http://economyandmarkets.com

Follow me on Twitter @HarryDentjr

Harry studied economics in college in the ’70s, but found it vague and inconclusive. He became so disillusioned by the state of the profession that he turned his back on it. Instead, he threw himself into the burgeoning New Science of Finance, which married economic research and market research and encompassed identifying and studying demographic trends, business cycles, consumers’ purchasing power and many, many other trends that empowered him to forecast economic and market changes.

Copyright © 2016 Harry Dent- All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

Harry Dent Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in