Shortly before Donald Trump was elected Presidentlast year, reports emerged that the his eponymous real estate brand had been negatively impacted by his campaign. A year into his presidency, things have only gotten worse for the Trump Organization’s marquee properties in New York City, the Wall Street Journal reports.
WSJ analyzed data compiled by the real estate website CityRealty and found that the average price per square foot at Trump Tower had declined 13 percent from last year, and 26 percent from 2015, based on the five sales at the building this year. Furthermore, the median sales price at the building has plummeted to $2.2 million, the lowest it has been in a decade. At Trump International Hotel and Tower, near Columbus Circle, the average price per square foot has dipped 24 percent since 2015.
Real estate experts and brokers that the WSJ spoke with pointed out many different reasons for this slowdown. Most concurred that the Trump presidency’s rhetoric could have played a role, while others pointed to a general slowdown in the luxury sales market. Others contended that while interest had waned among local buyers, international buyers remained unperturbed.
While examining the luxury slow down trend further, WSJ found that the price per square foot at buildings comparable to the Trump Tower on Fifth Avenue had risen during the same period, so that could be another indicator of the Trump brand itself factoring into the slowdown.