Amidst a tumultuous global market and poor Q3, there's a new wave of development building in a sweet spot of $3M to $7M for a larger market of less-wealthy foreign investors looking to invest in safe US real estate assets.
Absorption has slowed down for condos in the $5-$20M range, limiting the number of buyers, merchant bank RockTree Capital President Omer Ozden says. Omer helps Chinese investors find development opportunities in the US. "If you can hit a price point that even the middle class can afford, that’s a very large market."
To accommodate this bigger pool of potential buyers, developers are building smaller apartments, leading to increased interests from wealthy Chinese buyers who previously only sought bigger assets, Omer says.
Despite a weak world economy, gateway cities like New York have "always been a pretty stable environment for investment,” Hong Kong developer Neo Que Yau says. His company Euro Properties is behind a $160M Manhattan project. [Bloomberg]
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