Matrix Blog

Market Reports

Knight Frank Tall Towers Report Shows London With Similar Manhattan Height Premium

November 6, 2012 | 10:00 am | nymaglogo | Reports |

Knight Frank released their new report exploring the floor level premium in London’s high-rise residential developments with the coolest report name ever: Knight Frank Tall Towers Report 2012

While NYC has a taller residential housing stock than London but the premium per floor is similar. London shows a 1.5% increase in value per floor. My rule of thumb for Manhattan has been 1% to 1.5%, but closer to 1%. However we treat floor level as a different amenity than view and that’s probably the reason for the slightly larger adjustment in London. What’s particularly of interest is how much more the per floor cost of development is for higher floors:

Net to gross area ratios in tower schemes are lower, since the percentage of space taken up by the cores and service provision areas are comparatively high. This means that the effective revenue-generating 43% Uplift in construction costs per sq ft between the 10th and 50th floor.

I’ve explored the subject myself in New York Magazine and The Real Deal Magazine.



Tall Towers Report 2012 [Knight Frank]
Manhattan Values By Floor Level [Matrix/New York Magazine]
The cost of a view [The Real Deal]

Tags: , ,


[Knight Frank] Economic Uncertainty Pushes Price of Luxury Bricks and Mortar Higher

November 4, 2012 | 8:00 am | delogo | Reports |


[click to open report]

Our friends across the pond at Knight Frank just released their Q3 2012 Prime Global Cities Index which our firm and Douglas Elliman in NYC and Miami contribute content to.

Miami was #3 after Dubai although that placement was exagerated by the drop in distressed sales in south Florida (and they will rise going forward). Still, Miami has come a long way in 2 years. Manhattan showed decline but most of that was attributable to the shift in mix to entry level sales as mortgage rates continue to fall to new record lows. However it’s quite interesting to look at Manhattan as more mundane a market than the super-luxury segment would suggest. Further proof that the top end is not a proxy for everything else.

Cities such as Dubai, Miami, Nairobi and London are increasingly considered investment hubs for HNWIs in their wider regions. In the wake of the Arab Spring, Dubai has been seen as a relative safe haven for MENA buyers while Venezuelan and Brazilian investors have looked to Miami to limit their exposure to domestic political and economic volatility.

HNWI = High Net Worth Individual

Here’s KF’s top line overview:

-Fifteen of the 26 cities tracked by the Prime Global Cities Index (58%) recorded flat or positive price growth in the year to September, but over the last quarter 20 of the 26 cities (77%) have seen flat or positive growth – indicating an improving scenario.
-The index now stands 18.7% above its financial crisis low in Q2 2009 with Hong Kong, London and Beijing having been the strongest performers over this period, recording price growth of 52.9%, 45.4% and 39.5% respectively.
-Five cities recorded double-digit price growth in the year to September; Jakarta, Dubai, Miami, Nairobi and London – a city from each of the five key world regions.



Q3 2012 Prime Global Cities Index [Knight Frank]
The Elliman Report: 3Q 2012 Manhattan Sales [Prudential Douglas Elliman]
The Elliman Report: 3Q 2012 Miami Sales [Douglas Elliman]

Tags: , ,


[Special Report] RBI Pending Home Sales Index – February 2011 [Washington, DC Metro]

March 10, 2011 | 1:51 pm | Podcasts |

Read More

Play

Tags:


[Special Report] RBI Pending Home Sales Index – February 2011 [Baltimore Metro]

March 10, 2011 | 1:47 pm | Podcasts |

Read More

Play

Tags:


[Special Report] RBI 2010 Year End Housing Market Summary [Washington, DC Metro]

March 3, 2011 | 3:36 pm | Podcasts |

Read More


[Special Report] RBI 2010 Year End Housing Market Summary [Baltimore Metro]

March 2, 2011 | 12:00 pm | Podcasts |

Read More


[Commentary] The RBI Pending Home Sales Index Concept

February 14, 2011 | 12:29 pm | nytlogo | Podcasts |

Read More

Tags:


[Special Reports] 2001-2010 Manhattan Townhouse Report + Manhattan Market Report

February 13, 2011 | 10:32 pm | delogo | Podcasts |

Read More


[Special Report] RBI Pending Home Sales Index – January 2011 [Baltimore Metro]

February 13, 2011 | 10:31 pm | Podcasts |

Read More

Tags: ,


[Special Report] RBI Pending Home Sales Index – January 2011 [Washington, DC Metro]

February 13, 2011 | 10:15 pm | Podcasts |

Read More

Play

Tags: ,