Since the Euro is creaking under the prevailing sentiment that Greece will flee, I thought it would be interesting to take a look at how Manhattan looks from Europe and the UK’s perspective. I threw in Canada and Australia for good measure. I applied their currencies against the US dollar and the Manhattan inflation adjusted average sales price (dark blue line).
I had a heck of a time figuring out how to convert the Brazilian Real and South Korean Won in a way that makes good chart sense so perhaps a Curbed reader can lend a hand on that for another chart. In the meantime…
Europe (pink line) and the UK (orange line) are seeing Manhattan real estate prices with 24.8% and 36.9% discounts, respectively. Canadian (green line) and Australian (light blue) dollars were basically at par and no discount was seen. Ten years ago I recall taking my family on ski vacations to Canada and the strength of the US dollar was a strong incentive to go there—everything was about one third less. I can imagine the same thinking applies to Europeans and Brits—tourism to NYC is at record levels and foreign buyers are making their real estate presence known.
However, if the Euro unravels and gets weaker against the US dollar (which seems to be stagnant), we may see the flow of demand from Europe soften over the next year.
· Matrix [matrix.millersamuel.com]
· Three Cents Worth archive [Curbed]