After year one of the Trump Presidency, the value of the Trump name on Manhattan condos appears to have been diminished. Pricewise, Trump-branded condos may not even qualify as “luxury” following the election.
Last year marked the first time that prices at all Trump-branded condo buildings in Manhattan fell below average Manhattan condo prices and well below average “luxury” condo prices, according to a recent report by the listing site CityRealty.com.
CityRealty.com studied 11 Trump-branded condo buildings in Manhattan, and weighed factors like the number of sales they have seen annually, location and the performance of similar-priced condos in the area. Buildings were rated overall on a scale from 1 to 10 in terms of their value as an investment.
Overall, the Trump-branded condos averaged a rating of 5, meaning they represented a “middle of the road” investment value. Individual results varied but there does appear to be a link between the Trump-brand and Trump’s first year in the White House.
“Considering each building individually, there does appear to have been a discernible effect, with prices trending downward in most Trump-branded buildings over the past year,” says CityRealty.com in the report.
Five Trump-branded condos received rating between 1 and 4, or a “bad investment.” Trump Palace with a rating of 2 fared the worst of all condos studied. Trump Tower, besieged by Secret Service agents, fared a little better that Trump Palace with an overall rating of 3. CityRealty.com found that prices were down in both properties, and well below the Manhattan average in Trump Palace.
The other Trump-branded condos that were declared bad investments were Heritage at Trump Place, Trump Parc East, and Trump Place at 120 Riverside. Criteria for the ratings included below average prices, fewer sales over the last two years, and dramatic price cuts.
On the other hand, five Trump-branded properties were rated “neutral” investments. These buildings saw high annual sales volume, have plentiful amenities in comparison to neighboring properties, and, on average, have prices on par with or above overall Manhattan condo prices.
The “neutral” condos include Trump Place (200 Riverside), Trump Place (220 Riverside), Trump Park Avenue, Trump World Tower, and Trump International.
Trump Parc was the only property rated as a “good” investment. Trump Parc was rated a 9 based on a high level of price appreciation since 2007, steady sales volume over the last two years, and its proximity to Central Park.
With average prices in Trump-branded condos falling below the borough’s average, the Trump name may no longer represent the luxurious lifestyle of its famous brand ambassador.
“In part, this is simply a function of the age of the buildings, and reflects a market that has been filled with other luxury apartments, selling for higher prices, over the past decade. However, it is also the case that the average price of condos in many Trump-branded buildings are below the average prices for all other Manhattan condos,” says CityRealty.com.
And since the results of the study revealed that not all Trump-branded properties have been impacted equally, CityRealty.com says that investors should not consider Trump-branded buildings to be “interchangeable” and examine each one on an individual basis to determine its value as an investment.
Click here to read the entire report.