Trump Logo Out, Values In: Real Estate Resurgence Unveiled – Exploring the Impact on Property Prices
Eugene Park Views
!['트럼프 로고' 떼자 가치 상승…'오히려 부동산에 악영향'](https://contents-cdn.viewus.co.kr/image/2024/02/CP-2023-0094/image-2b0db52c-67c3-4352-a31c-ccac83df6936.jpeg)
The value of the buildings that once symbolized luxury in America, owned by former President Donald Trump, has declined since his presidential election 2016. Facing allegations of inflating the value of his assets, Trump is defending himself by rating his brand as his “greatest asset.” However, the value of buildings from which the “Trump logo” has been removed has significantly increased.
The New York Times (NYT) cited a study by real estate company CityRealty on the 18th (local time), reporting that the per-unit value of seven Trump-branded condominiums in Manhattan, New York, fell by 23% over the past decade (2013-2023). Over the same period, the value of four buildings that removed the Trump logo increased by 9%, surpassing the overall market value growth rate (8%) of Manhattan condominiums.
The real estate value of Trump-branded condominiums in Manhattan began to decline from its peak in 2016 when Trump was elected president. According to Steve Van Nieuwerburgh, a professor of real estate at Columbia University, Trump-branded condominiums were sold at a price that included a 1% premium compared to other luxury buildings a year ago. Still, recently, they have been trading at 4% lower prices. The price of Trump Tower, located on Manhattan’s busiest street, Fifth Avenue, has plunged 49% since 2013. Professor Van Nieuwerburgh said, “This analysis has clearly shown that the cause of the decline in (real estate) value is the Trump brand.”
!['트럼프 로고' 떼자 가치 상승…'오히려 부동산에 악영향'](https://contents-cdn.viewus.co.kr/image/2024/02/CP-2023-0094/image-f8fcbfef-b275-403f-94ef-bdc09d9ab31e.jpeg)
Eric Trump, the second son of former President Trump and the de facto manager of the Trump Group, has refuted these survey results, claiming, “Data can be manipulated to tell the story they want, but it’s undeniable that our buildings are selling at the highest prices among real estate worldwide.” However, CityRealty revealed that, after selecting the top 100 real estate transactions in Manhattan last year, the Trump brand ranked 47th and 77th.
Former President Trump has been indicted for allegedly inflating the value of assets such as real estate to get favorable terms from banks and insurance companies. In a civil trial related to suspicion of loan fraud last October, he compared the value of the Trump brand to Coca-Cola, arguing, “I didn’t even reflect my greatest asset, the brand, in the books,” and that the asset value was adequately determined. However, the Manhattan Federal Court in New York ruled on the 16th that former President Trump inflated his assets and obtained unfair benefits, imposing a fine of $355 million.
Most Commented