Is The NYC Luxury Market A Bargain?

Written By Janna Allen | April 26, 2013
Tumblr mjkjccugmj1s6h6j4o1 1280

Earlier this morning, a music video by mayoral candidate Jimmy McMillan fell into my lap. McMillan, dressed in a dashing blue suit (complete with gloves and shined shoes) walks along NYC streets as a hypnotizing beat plays in the background. He begins rapping about the fact that rent is “Too damn high” and goes on to tackle political issues regarding education and wages.

In light of this, World Street Journal reports that the luxury real estate market in New York is, in fact, a bargain. This bargain, however, is in comparison with the three other prime real estate capitals of the world—Hong Kong, London and Singapore (in no specific order).

The report, generated by real-estate brokerage Savills, Deutsche Bank, and Candy & Candy (a London-based property design and development management company), compares the overall cost of buying and selling of a $15.26 million property within the four cities.

We’re shown that in Hong Kong, the cost of buying a property in the $15 million range will result in an upfront cost of $3.75 million (24.7% of the price), while in New York, one would have to dig up a much lower amount of $217,980 (a mere 1.4% of the price). Over in London, 7.1% of the $15 million is expected—resulting in a $1.09 million cost—and in Singapore, 18% of the price causes buyers to adhere to a $2.75 million purchase fee.

While it’s clear that the initial purchase fee in New York is lower than the other prime cities, an average annual property tax of $285,112 for a luxury dwelling in New York City is the highest of the four cities—London has the lowest of the four at a mere $3,294, annually.  Yet, as the Journal reports, many of the newer luxury buildings within New York have received tax abatements, which lower the property taxes.

The CEO of Candy & Candy, Nick Candy, expresses his concerns regarding the higher fees and taxes in London. He fears that the price of fees will rise to a number which foreign wealthy buyers will find unattractive, and instead find solace in New York.

So while McMillan’s rap about rent being too high gets passed around the internet, those on the outside looking see the NYC luxury market placed nonchalantly in the bargain-bin, with a reduced-price sticker attached to purchase fees.


Elegran LLC may or may not be the exclusive listing agent of the properties being displayed on All data displayed on is presented for informational purposes only and should be independently confirmed by all customers. All Information is compiled from both public and private sources including, but not limited to the RLS, MLS and ACRIS; each of which is assumed to be reliable. All information displayed is subject to errors and omissions regarding apartment specifications and final sale prices, and further, any unit listed may have had its listing withdrawn without notice subsequent to such information being compiled. No representation is made as to the accuracy of any description (ie: listing, close sale data, and/or building description) of any building or individual unit. All measurements and square footage are approximate and all information herein should be confirmed by customer and/or their attorney. Elegran LLC, its members, affiliates, and contributors adhere to New Your City, New York State, and United States Fair Housing Laws.