New York City – a tar­get mar­ket for new in­vestors: Richard L. Jor­dan

Global Times – Metro Beijing - - ENTERPRISE - By Du Qiong­fang

As one of the most ex­pen­sive cities in the world, New York City has be­come in­creas­ingly at­trac­tive to in­ter­na­tional in­vestors in re­cent years. Well-known in­ter­na­tional prop­erty con­sul­tancy Dou­glas El­li­man Knight Frank re­cently re­leased its mar­ket re­port of new de­vel­op­ment on New York in Q3 of 2018. The Global Times (GT) sat with Richard L. Jor­dan

(Jor­dan), se­nior vice pres­i­dent of Global Mar­kets for Dou­glas El­li­man Real Es­tate, who shared his in­sight and vi­sion on prop­erty and in­vest­ment in New York City in the US.

GT: What’s your per­spec­tive on the fu­ture of the real es­tate mar­ket in the US com­pared with other global cities, and what are the ad­van­tages of in­vest­ing in the res­i­den­tial mar­ket in New York City?

Jor­dan: In 2018, we have ex­pe­ri­enced a slow­down in the global econ­omy. In a pe­riod of slow growth, geopo­lit­i­cal volatil­ity and eco­nomic un­cer­tainty, most in­vestor strate­gies shift to cap­i­tal preser­va­tion over higher risk in­vest­ments. In this cli­mate it is crit­i­cal to fo­cus on se­lect mar­kets that have his­tor­i­cally main­tained value and ap­pre­ci­ated con­sis­tently through mul­ti­ple real es­tate cy­cles. To­day, New York City is ar­guably the most se­cure mar­ket for such preser­va­tion in light of the cur­rent eco­nomic fun­da­men­tals and mar­ket trans­parency. In an­a­lyz­ing the US econ­omy, the unem­ploy­ment rate is near­ing its low­est point in al­most 50 years at 3.7 per­cent, while the eq­uity mar­kets re­main strong. New York City specif­i­cally is the world’s largest ur­ban econ­omy with $1.7 tril­lion in GDP and is the world’s largest fi­nan­cial hub, ac­count­ing for 40 per­cent of global mar­ket cap­i­tal­iza­tion be­tween the NYSE and the NAS­DAQ. New York City’s GDP growth is es­ti­mated at 20 per­cent over the next five years, which should cre­ate the con­di­tions for the preser­va­tion and fu­ture ap­pre­ci­a­tion in­vestors are seek­ing. Ad­di­tion­ally, many top-tiers mar­kets re­cently in­sti­tuted eco­nomic cool­ing mea­sures, re­sult­ing in ad­di­tional tax­a­tion for for­eign pur­chasers. In con­trast, the US has no such eco­nomic de­ter­rents for in­bound for­eign buy­ers as it re­lates to real es­tate.

GT: What about the job op­por­tu­ni­ties in New York?

Jor­dan: As men­tioned pre­vi­ously, New York City is the world’s largest fi­nan­cial hub, which pro­vides a large num­ber of op­por­tu­ni­ties within the fi­nan­cial sec­tor. New York City has also ex­pe­ri­enced sig­nif­i­cant growth in the tech sec­tor, now sec­ond to Sil­i­con Val­ley in the amount of Ven­ture Cap­i­tal raised for star­tups. In ad­di­tion, there is cur­rently $125 bil­lion of planned in­fra­struc­ture in­vest­ment over the next five years, which will fur­ther im­prove the eco­nomic land­scape of New York City. The pos­si­bil­i­ties are end­less.

GT: How about the ed­u­ca­tion re­sources in New York?

Jor­dan: If you look at higher ed­u­ca­tion, eight of the top 10 univer­si­ties in the world are in the US. If you look specif­i­cally within New York City, there are 238 univer­si­ties and col­leges. Some of the most fa­mous no­table univer­si­ties in the US such as Columbia Uni­ver­sity and New York Uni­ver­sity are lo­cated in the heart of the city. New York City is also home to world-renowned per­form­ing arts in­sti­tu­tion, The Jul­liard School as well as Par­sons School of De­sign, the Fash­ion In­sti­tute of Tech­nol­ogy, and the School of Vis­ual Arts, among many oth­ers. There’s a wide range of op­tions for stu­dents.

GT: How about the pub­lic se­cu­rity in New York City?

Jor­dan: New York City is now con­sid­ered the safest big city in the US. It con­tin­ues to be­come safer through pol­icy and con­tin­ued growth and re­vi­tal­iza­tion of var­i­ous neigh­bor­hoods. As men­tioned ear­lier, there is cur­rently $125 bil­lion of planned in­fra­struc­ture in­vest­ment through­out the city.

Photo: Cour­tesy of Knight Frank

Aerial view from 125 Green­wich Street, New York

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