New York, the home of Wall Street and many of the richest people on the planet is once again seeing major changes to the way luxury is defined in the city that never sleeps. The constantly changing face of real estate in New York City has taken on a new face as what is described as ‘ultra-luxury’ now comes with a price tag upwards of $10 million; despite the continued rising prices in New York real estate values, the state of New York is bracing for a potential downturn which could follow the expected passage through Congress of a tax reform bill cutting some relief from high property and sales taxes for home buyers.
The Republican-authored tax reform bill has been cited by many New York-based real estate agents as having the potential to slow the number of buyers making home purchases in the coming months; in fact, many real estate professionals have already stated many clients are placing their home-buying plans on hold until the tax reform issue is addressed by the Federal government.
The basic issue for homebuyers brought up by the tax reform bill is the fact the proposed new law will remove the ability of homebuyers to offset high property or sales taxes paid upon the purchase of a new home against their federal tax return. This problem will largely affect residential homebuyers who face the prospect of higher taxes across the board but will also see the funds available to the city and state of New York should the number of taxes paid to be lower than expected. On the other side of the coin is the commercial real estate industry which could see an increase in sales as condominium developers are afforded a higher than expected number of tax breaks in the GOP tax reform bill.
Across the city of New York the real estate industry continues to evolve and what constitutes luxury is also redefined on a regular basis; what is referred to as “ultra-luxury” has once again been given a higher price tag than at any time in the past with $10 million now defined as the price for a home in this bracket. Not only has the price tag for the most luxurious homes in New York been upgraded the number of amenities and services expected by luxury home buyers across the city is also evolving to reflect the latest technologies available to all.
In the past, the height of luxury was seen in New York as having large spa and sauna rooms in an apartment but the latest group of homebuyers want the luxury of a hotel style experience at all times. One of the latest “ultra-luxury” apartment complexes to be developed in the “Big Apple” is the Soori High Line which has been designed to create an innovative indoor/outdoor experience with four feet deep heated swimming pools adjacent to the living area of each apartment. The needs of residents within luxury homes has also changed as meal planning experts and culinary exhibition spaces are now becoming commonplace in the latest “ultra-luxury” apartments found across New York. The fact buyers in Manhattan and its surrounding boroughs are entering the city from Russia, China, and other far-flung destinations wanting to enter an already established community.