Friday, September 14, 2012

When Apartments Become Art

The N.Y. Times tries to explain the surge in prices for the most luxurious apartments the nation's biggest cities:

If it’s $100 million, is it art?  [...] Sales at such stratospheric levels in Manhattan, as well as records in certain neighborhoods in Miami, Los Angeles and a few other pockets isolated from the nationwide collapse in real estate prices, have left real estate professionals struggling to explain the surge. Art may be the answer.  “Art is what people are willing to pay for, and an apartment like this is like a piece of art,” [said] the Long Island real estate developer Steven Klar [...]

“At some point, it falls apart,” he said. Art and real estate “are very different. The assets are different, the liquidity is different. Still, as the art market has become increasingly global, people are looking at art as an asset because the values have increased so much. People have always considered their home as an asset. If they see it’s worth $50 million, they’re even more likely to consider it an asset. So you can see the markets converging.”

Steve Clowney

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