Manhattan’s property sales dollar volume plummeted 55 percent year-over-year in the first half of 2017, according to Real Capital Analytics. Some brokers claim these six months were the quietest stretch since 2008.
Observers agree on the culprit: Sellers, egged on by 2016’s record prices and by brokers eager to please them, are often asking too much for their buildings. Meanwhile, buyers are increasingly reluctant to pay top dollar, citing rising interest rates, uncertainty over federal tax policy and the prospect of a cyclical downturn. No one seems to know what will happen over the coming year, so why take the risk? It probably didn’t help that new capital controls have made it harder for Chinese firms to invest overseas.
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According to sources, Kushner Companies is still trying to raise money [for 666 5th) and is confident that a deal will get done. Tenants whose leases are up are offered short-term renewal deals, according to a source, with an eye on emptying out the tower for development. But brokers and investors, including those who were pitched on the project, are skeptical. They question whether now is a good time to bet on luxury condos and high-street retail, with both markets struggling.