The Changing Face of the NYC Luxury Residential Market Bonnie Stone Sellers, CEO Christies International Real Estate October 18, 2013

What is the definition of luxury residential real estate globally? I. Defining the luxury buyer in New York Price per Residential Unit in USD, Millions, for the Period of September 2011 – 2012 Source: Affiliate owners from the Christies International Real Estate network 1

Trends in Luxury Apartment Markets I. Key NYC market facts 2 NYC stock: Co-op and condo housing stock of 290,000 units, 70% co-op, 30% condo Inventory: 4,059 units 2013 to date: $13.7 billion to date (9,784 units) Q3 sales over $5 million: 111 units (28 over $10 million) Q3 new development sales: 327 units

I. Defining the luxury buyer in New York: Market overview, Q3 3 Average price per square foot: $1,132

Trends in Luxury Apartment Markets I. Defining the luxury buyer in New York Trends in luxury apartment markets 4 Flexibility for renovations High ceilings Apartment finishes to the level of a Five Star hotel Family kitchens along with commercial quality kitchens Classic apartment layouts and traditional materials such as stone and glass Sustainability in MEP systems and high-end technology Infrastructure Range of common spaces: gyms, pools, spas, theatres, lounges, roof gardens Parking and storage Amenities Services Hotel-like services: concierge, doorman, housekeeping, catering, fine dining Security and privacy

I. Defining the luxury buyer: Who is fueling the trend? 5 Primary residence city Growth in job market and Wall Street successes 1. New Yorkers 2. Foreigners Evidenced by strong condo market performance NYC trophy real estate a safe haven for wealth Buying for their student children Second home buyers Currency considerations Stringent tax laws in their own countries 3. Millennials Attracted by low interest rates Familial assistance has boosted purchasing power Strong belief in investment value Affluent young tech executives pushing up prices in the west side and downtown areas

II. NYC in the global context: Luxury Defined Market Report 2012 Christies International Real Estate Index 6

II. NYC in the global context: Luxury Defined Market Report 7 Q saw 25% fewer listings than Q Limited supply Global Housing Market Trends Global Housing Market Trends In New York NY has it alleconomic stability, ease of business, transportation, cultural and lifestyle amenities Lifestyle attractions Luxury buyers paid 98.6% of asking prices in Q3, similar to retail purchases Luxury housing follows luxury goods Although Q1 was impacted, Q3 sales over $10M increased 75% over Q Tax laws

II. NYC in the global context: Luxury inventory days on market 8

II. NYC in the global context: Top real estate re-sales globally 9

II. NYC in the global context: Does NYC have the top US properties? 10 Copper Beech Farm Greenwich, Connecticut $140 million The River House Manhattan, New York $130 million The Crespi / Hicks estate Dallas, Texas $135 million The Owlwood Estate Los Angeles, California $150 million (reportedly)