Evidence of meeting #136 for Government Operations and Estimates in the 44th Parliament, 1st Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was property.
A recording is available from Parliament.
Conservative
The Chair Conservative Kelly McCauley
Thank you, Mrs. Kusie.
We'll finish up with Ms. Atwin.
Go ahead, please.
Liberal
Jenica Atwin Liberal Fredericton, NB
Thank you very much, Mr. Chair.
It's good to see everyone. Thank you to our witnesses for being with us today.
Mr. Miller, can you talk about how the New York real estate market compares with other major markets?
President and CEO, Miller Samuel Inc.
New York City, specifically the Manhattan market since we're talking about it, is one of the highest-priced if not the highest-priced housing markets in the United States. Certainly, the purchase side and the rental side are both at the top of the list. I've been in the market since the mid-eighties, and this has been a consistency of the market.
The challenge of the market is adding new supply. It's very expensive and difficult to build in the market. Manhattan has very little excess land, so the product that comes into the market tends to skew toward the higher end of the price range.
Liberal
Jenica Atwin Liberal Fredericton, NB
Great. Thank you very much.
Mr. Aabo, the property listing for the condominium at 111 West 57th Street describes it as a property with “modern conveniences within grand spaces”, and describes various amenities to which residents have access, such as “an 82 foot...swimming pool with private cabanas”. To what extent do property evaluations and appraisals consider the value of such amenities in assessing market value?
Licensed Real Estate Agent, Douglas Elliman Real Estate
I think maybe Mr. Miller will want to answer that on the appraisal side.
From the broker side, most new developments use the amenities and additional facilities as extra ways to entice residents to come live with them rather than in a neighbouring building. They're used primarily to create additional value. I would say that the calibre of some of these facilities stands the test of time and will potentially help in maintaining the value of a residence as well.
President and CEO, Miller Samuel Inc.
Think of the amenities as a suite of things that help establish the property at a certain value point within the market. Usually properties of a high calibre have a certain minimum number of amenities that are expected by potential buyers. In the Midtown location, for example, about 85% of the new development condo purchases over the last decade have been by international buyers. It would be just the opposite downtown. There's something about the amenities suite being offered in Midtown that is attracting this market.
Liberal
Jenica Atwin Liberal Fredericton, NB
Thank you very much.
On August 21, at our last committee meeting, we had officials from GAC. They estimated that the life cycle of this residence would be between 55 years and 60 years, and that its value would appreciate during this time. Would it be reasonable to assume that the new official residence at 111 West 57th Street will appreciate at a rate higher than inflation over this period? Could you explain that, possibly?
President and CEO, Miller Samuel Inc.
I would be in agreement that because of the restraint on supply in the market, especially in the new development space, for the period 50 or 60 years down the road, it would be a reasonable estimate to assume that the price growth of the property in the long run would be at or above inflation levels.
Liberal
Conservative
The Chair Conservative Kelly McCauley
Thanks very much.
Mr. Miller, we'll book you for 50 years from now to see if your prediction holds true.
Colleagues, if you want to put that in your calendar, that will be 2074.
Witnesses, thank you very much for joining us today. We appreciate it.
Everyone, we'll get back to you once we talk to everyone involved regarding Mr. Clark.
With that, we are adjourned.