The London developer who helped build the most expensive apartment complex in Europe is looking for New York real estate after a UK tax hike on luxury homes, according to Bloomberg.
“New York was pretty undervalued and is catching up,” Nick Candy told Bloomberg. Candy partnered with his brother Christian to create One Hyde Park, where a furnished home sold for 7,500 pounds a square foot last year. “It’s much more attractive to invest in New York than London.”
More than 1.5 billion pounds of home sales have been completed at the 86-unit One Hyde Park, which was developed in a joint venture between Christian Candy’s CPC Group and Qatar Prime Minister Sheikh Hamad Bin Jasim Bin Jaber al Thani. A 9,000-square-foot, five-bedroom, six-bathroom apartment there is on the market with an asking price of 65 million pounds.
Nick Candy criticized Prime Minister David Cameron’s decision to close a record budget deficit by upping a transaction tax from 5 to 7 percent on homes sold for more than 2 million pounds, or $3.2 million. “Could (New York) overtake?” Nick Candy told Bloomberg. “Yes, if our government continues to make absolutely disgraceful decisions on the real estate market in this country.”
Christian Candy bought a triplex penthouse at the Plaza Hotel on Fifth Avenue in March for $25.9 million, 31 percent lower than the initial asking price. Nick Candy’s interior-design company is remodeling the apartment and is scheduled to finish by the end of the month, Bloomberg reported. The brothers are looking for more projects in New York, where real estate buys are taxed at 0.4 percent, according to the state Department of Taxation and Finance website. The “mansion tax” of 1 percent of the sales price applies to homes purchased for $1 million or more.
“There’s a lot of parallels with London,” Jonathan Miller, president of New York-based appraiser Miller Samuel Inc., told Bloomberg. “The big thing over the last year and a half is the proliferation of trophy purchases… Luxury housing is the new global currency.”