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Weekly News (June 28, 2017)

1. ‘Waterline Square’ condo in Westside, Manhattan is in final phase

  • Total 1,132 units in 3 buildings/ Located between 59th~?61st street / Total cost: $2.3 Billion
  • Will complete 2018
  • One Waterline: 37 stories / 56 unit condo, 216 rental units
  • Two Waterline: 38 stories / 106 units condo, 486 rental units
  • Three Waterline: 34 stories / 47 condo units, 167 rental units
  • 20% of total units are designated to low income people
  • 20 year Tax abatement program

2. LIC (Long Islands City) in Queens NYC is #1 area in new Apt development in US 

  • According to ‘RentCafe’ LIC → 12,533 units in 41 complex for last 7 years
  • Close to Manhattan & Public transportation
  • Los Angeles, CA: 7,551 units / San Jose: 6,814 units
  • Manhattan / Brooklyn area → 4 places are within top 10 in US (Manhattan Clinton-Health Kitchen area, Brooklyn Williamsburg, Manhattan Upper West)

3. Bioscience & Technology Center in Westchester Co begins to build 

  • IBM (Research Center in Yorktown) is prominent company in Westchester County
  • Planned in 2016 → $120 Million Budget for the center
  • Developer, Fareri Association got into 99 year ground lease (80 Acer)
  • County owned lot: Near NY Medical School and Westchester Medical Center
  • 300,000 SF: the Center and mixed commercial stores (3 buildings complex)
  • Named ‘North 60’ project → Green roof (Saving energy), 50% would be green area
  • Shuttle bus operation to near Metro station
  • Income to county: 49 Million tax, $7 Million rent / 4,000 construction jobs & 8,000 regular jobs

4. Reason for still low house owning rate?

  • Still Difficult lending standards
  • Student loan pressure
  • Low power to buy (Income and house price) – Low inventory
  • New construction is not enough

5. Still shortage of Apt in big cities according to National Apartment Association

  • Each Big 10 city needs 100,000 ~ 300,000 units more for future 10 years
  • NYC: 280,000, Dallas: 270,000, Miami: 200,000, LA:180,000
  • NYC built 212,000 unit for last 15 years → still shortage
  • Reason: High house price
  • Order for difficulty to build Apt: Honolulu → Boston → Baltimore → Miami
  • 40% of resident spend more than 35% of income as housing cost in 7 cities among 10
  • Worst area → Miami (54% of resident spend more than 33% of income)

6. Upward house pricing is easing

  • In the beginning of the year was strong → Easing upward move
  • Case-Shiler index in April → 5% CMT last year (5.6% in March)
  • 20 big city index: 5.7% (Forecast was 5.9%)
  • Seattle: 12.9%, Portland:9.3%, Dallas:8.4%
  • Not too worrisome

7. Recession warning in US

  • According to Financial Times, Investors are worrisome due to negative economy figures
  • US 10 year treasury bond return rate → very good indicator of economy after W.W II
  • Treasury bond is long term → usually return rate is upward curve
  • If it becomes flat → (Right after Trump inauguration → sharp upward swing)
  • Reason: Reference Interest rate Up → Low confidence on growth / inflation price down

8. Korean students come in less: lowest for 13 years

  • F-1/M-1 visa total → 71,204: 7% down compared to last year
  • Steady decrease from 110,083 in 2008
  • Chines students: 362,368, India students: 206,698, Korean student: 71,204, Saudi Arabia: 55,806
  • STEM area → Korean: 23.5%, India: 84%, Chines: 42%

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Stephen Lee

He has been in Real Estate industry in about 20 years and has been Broker of Record for 9 years. His experience includes residential, commercial, and property management. Prior to involving with Real Estate business, he has been involved in the digital communication equipment industry utilizing his engineering background and education, including running own company. He has established C Land Realty in 2011 which has grown to staffing over 100 Real Estate agents and the annual transaction amount of over $110,000,000 today.

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