(New York, NY) — CityRealty, a real estate data and listing website, released a new report that stated Trump-branded buildings in NYC are losing their “luxury” status.
Many can’t help but speculate if the falling prices are due to his bumpy presidential campaign.
The report compared the prices of Trump-branded properties to the rest of Manhattan’s luxury condo market, and found that the Trump condos are cashing in at far lower prices.
The report looked at the number of year-on-year sales the Trump condos have seen, as well as their location and the success of neighboring luxury properties.
Which Trump properties are plummeting?
The Trump Palace
This palace is losing its royalty. Located at 200 East 69th Street, the Trump Palace had the lowest comparable prices to the Manhattan condo average. The building has seen an 8% dip over the last decade, leaving many wondering if the decline in value will continue.
The Trump Tower
That’s right, the infamous Trump Tower, located at 721 Fifth Avenue, has plummeted a whopping 10% over the past several years.
The iconic tower, known for its secret service presence, performed second-worst when compared to the Manhattan condo average.
Is it the tainted reputation or just the real estate trend?
While his political campaign was far from smooth, there are other factors that could have contributed to the decrease in value.
Trump condos are outdated—typically around 25 years-old—which could be the cause of the falling prices. Luxury condos in NYC, such as One57, offer modern features and create a competitive market.
However, there is no denying that the Trump-branded buildings are taking a hit. CityRealty revealed in the analysis that the Trump International Hotel and Tower’s price per square foot (PPSF) fell just shy of $3,000, but its neighbor, 15 Central Park West, had a PPSF of $7,000. Along with this staggering price difference, three of Trump’s global hotels have removed the name “Trump” due to his presidency.
CityRealty’s Director of Research and Communications, Gabby Warshawer, stated that although Trump’s reputation does appear to have affected prices, luxury real estate as a whole saw a 5% dip in 2017.
What should NYC be expecting?
There is news that the Trump organization is trying to launch two budget-friendly hotel chains. Could this be the end of his luxury real estate status?