Robbie Report

THE ROBBIE REPORTFROM THE DESK OF ROBBIE BRIGGS

Real Estate Trends from Around the GlobeI am pleased to send you the latest edition of the quarterly Robbie Report, containing �rst-hand real estate information from a global group of extraordinary brokers that I am privileged to have, due to my association with Sotheby’s International Realty.

While predicting trends during volatile economic times in America and around the world is no easy task, I do feel con�dent that North Texas will continue to be a giant economic engine bene�ting

all the cities and suburbs of the Metroplex. Buildings, companies, museums and parks are drawing people to North Texas, both as visitors and residents. Nine major companies are relocating their headquarters to our area, adding to the 269 companies (20 from the Fortune 500 list) that already call Dallas home.

Allow me to share some insights from local, national and international locations.

For more information contact me at [email protected]

• �e Dallas-Fort Worth Metroplex market was a very strong one in 2012, which allowed us to double our business over 2011. We generated sales of $1.2 billion (largest volume ever in our 52-year history), an increase of 100.58 percent over 2011, and we closed 1,610 transactions, an increase of 100.75 percent over 2011. In terms of 2013, the following trends are ones we are encouraging our clients to monitor.

• �e demand for housing will continue to surge. he housing market has turned the corner, and there is no reason to believe that buyer demand will not maintain momentum throughout 2013.

• Prices will continue to increase. Pricing of any item is determined by supply and demand. Demand for housing will remain strong through 2013. �e supply of homes is tight in Dallas, which should signal good price appreciation.

• Move-up sellers will return in great numbers. With prices recovering, more sellers are realizing that now is the time to sell their current home and move up to the house of their dreams.

• Generations X and Y will prove they believe in homeownership. Contrary to what many have hypothesized over the last few years, young adults (18-35 year olds) are just as committed to homeownership as previous generations. Recent studies have shown that 43 percent already own a home, 72 percent see homeown-ership as part of their personal American Dream, and 93 percent of those currently rent-ing plan to buy a home.

• �e consumer will demand that their agent be an expert. �e agents at Briggs Freeman Sotheby’s International Realty understand that they need to invest the money, time and energy to truly understand what is happening and why it is hap-pening and communicate that to their clients.

While we enjoy a tremendous quality of life here, we realize that dramatic growth is more than pretty parks, a striking skyline and a place to enjoy sporting events. As a region, the Metroplex’s strength is in its numbers. Growth in every sector – business, culture, medicine – means a better quality of life in neighborhoods, schools and communities.

United States


�e numbers below speak for themselves.Extraordinary Rankings • Texas is America’s Top State for Business, according to CNBC.• Forbes listed Dallas (#8) and Fort Worth (#15) in Top 25 Best Places for Business.• Fort Worth is the fastest-growing city in North Texas, according to the North Central Texas Council of Governments.• Dallas Ranked #5 on the List of Top Cities for College Graduates, according to �e Dallas Morning News.• McKinney ranks #2 on the Money magazine 100 Best Places to Live list. Forbes named Westlake the most a�uent neighborhood in the United States. • Money magazine named Colleyville one of the 100 Best Places to Live.

Arts, Culture And Impact• Dallas’ Arts District is the largest, contiguous arts district in the country, drawing more than 1.5 million ticketed visitors a year and creating more than $128 million worth of economic impact.• Investments of more than $300 million in Downtown, including the Klyde Warren Park and the Perot Museum of Nature and Science, reportedly will bring more than $1.2 billion in income from business and real estate growth.

• �e Kimbell Art Museum is undergoing a $125 million expansion that will add to the economic impact of arts in the city, which currently stands at $241 million annually.

Medical Expansion Builds Communities• Currently UT Southwestern Medical Center contributes a combined impact of approximately $1.6 billion to the region and more than 23,000 jobs. �e campus’ new University Hospital, an $800 million, state- of-the-art facility, is slated to open in 2015.• Baylor Health Care System opened Baylor Medical Center at McKinney in July 2012, spending just under $200 million and creating over 500 jobs.• Cook Children’s Medical Center completed a $250 million expansion impacting children across Tarrant County.

On �e Horizon• �e proposed Trinity Forest Golf Club is projected to bring more than $32 million annually in economic impact to southern Dallas.• With a $2 billion investment by Beck Ventures and the new name “Dallas Midtown,” the Valley View area will undergo a major renovation over the next 10 years.

• �e Dallas-Fort Worth Metroplex market was a very strong one in 2012, which allowed us to double our business over 2011. We generated sales of $1.2 billion (largest volume ever in our 52-year history), an increase of 100.58 percent over 2011, and we closed 1,610 transactions, an increase of 100.75 percent over 2011. In terms of 2013, the following trends are ones we are encouraging our clients to monitor.

• �e demand for housing will continue to surge. he housing market has turned the corner, and there is no reason to believe that buyer demand will not maintain momentum throughout 2013.

• Prices will continue to increase. Pricing of any item is determined by supply and demand. Demand for housing will remain strong through 2013. �e supply of homes is tight in Dallas, which should signal good price appreciation.

• Move-up sellers will return in great numbers. With prices recovering, more sellers are realizing that now is the time to sell their current home and move up to the house of their dreams.

• Generations X and Y will prove they believe in homeownership. Contrary to what many have hypothesized over the last few years, young adults (18-35 year olds) are just as committed to homeownership as previous generations. Recent studies have shown that 43 percent already own a home, 72 percent see homeown-ership as part of their personal American Dream, and 93 percent of those currently rent-ing plan to buy a home.

• �e consumer will demand that their agent be an expert. �e agents at Briggs Freeman Sotheby’s International Realty understand that they need to invest the money, time and energy to truly understand what is happening and why it is hap-pening and communicate that to their clients.

While we enjoy a tremendous quality of life here, we realize that dramatic growth is more than pretty parks, a striking skyline and a place to enjoy sporting events. As a region, the Metroplex’s strength is in its numbers. Growth in every sector – business, culture, medicine – means a better quality of life in neighborhoods, schools and communities.

�e numbers below speak for themselves.Extraordinary Rankings • Texas is America’s Top State for Business, according to CNBC.• Forbes listed Dallas (#8) and Fort Worth (#15) in Top 25 Best Places for Business.• Fort Worth is the fastest-growing city in North Texas, according to the North Central Texas Council of Governments.• Dallas Ranked #5 on the List of Top Cities for College Graduates, according to �e Dallas Morning News.• McKinney ranks #2 on the Money magazine 100 Best Places to Live list. Forbes named Westlake the most a�uent neighborhood in the United States. • Money magazine named Colleyville one of the 100 Best Places to Live.

Arts, Culture And Impact• Dallas’ Arts District is the largest, contiguous arts district in the country, drawing more than 1.5 million ticketed visitors a year and creating more than $128 million worth of economic impact.• Investments of more than $300 million in Downtown, including the Klyde Warren Park and the Perot Museum of Nature and Science, reportedly will bring more than $1.2 billion in income from business and real estate growth.

• �e Kimbell Art Museum is undergoing a $125 million expansion that will add to the economic impact of arts in the city, which currently stands at $241 million annually.

Medical Expansion Builds Communities• Currently UT Southwestern Medical Center contributes a combined impact of approximately $1.6 billion to the region and more than 23,000 jobs. �e campus’ new University Hospital, an $800 million, state- of-the-art facility, is slated to open in 2015.• Baylor Health Care System opened Baylor Medical Center at McKinney in July 2012, spending just under $200 million and creating over 500 jobs.• Cook Children’s Medical Center completed a $250 million expansion impacting children across Tarrant County.

On �e Horizon• �e proposed Trinity Forest Golf Club is projected to bring more than $32 million annually in economic impact to southern Dallas.• With a $2 billion investment by Beck Ventures and the new name “Dallas Midtown,” the Valley View area will undergo a major renovation over the next 10 years.


• In Manhattan, it was a year of record-high sales for luxury real estate. But 2012 will also enter the books for its chart-topping listings, as sellers sought to ride the wave of irrational exuberance for trophy properties. In Manhattan, it all began in March with the record sale of a penthouse at 15 Central Park West for $88 million by the former chairman of Citigroup, Sanford I. Weill, to the daughter of a Russian billionaire. �en the casino king Steve Wynn paid $70 million for a 14-room duplex at 50 Central Park South. Mystery buyers signed contracts for a pair of duplexes at One57, a Midtown tower still under construction, for at least $90 million apiece.

Rising demand and a scarcity of new apartments are creating a rush on new luxury condominiums in choice neighborhoods, with buyers increasingly signing contracts for spaces before they are built. At the end of 2012, sales opened for 200 East 79th Street. �e building is still going up, but already contracts have been signed for 25 of the 39 units. �e same is true at Sackett Union, a development of 11 town houses and 32 condos in Brooklyn. In just three months, 24 of the condos and several town houses have sold.

• For Miami, 2012 was also a year of record sales. An Italian buyer paid $25 million for a penthouse on South Beach, while a Russian bought a 10-bedroom house at Indian Creek Village for $47 million. �ose sales inspired agents to go for broke on other properties. A six-bedroom penthouse in South Beach owned by the New York developer Ian Bruce Eichner has been listed for $39 million for several months.

�e biggest Miami trophy of all is Casa Casuarina, the former mansion of the fashion designer Gianni Versace. Owned now by the telecom mogul Peter Lo�in, it went on the market for $125 million in June — and was at that time one of the two most expensive residential listings in the country, according to Forbes. �e house has 10 bedrooms, 11 baths, and a 54-foot mosaic-tile pool lined with 24-karat gold, and it sits on Ocean Drive in the heart of the South Beach scene.

Miami developers have taken a page from the South American playbook – inspired by willing buyers �ocking to Miami. Developers of several condos are requiring initial deposits of 40 percent or more, as they get closer to completion. By the time the building is �nished, buyers are forking over as much as 80 percent of the total price of their apartments. �e strategy is working at three luxury buildings in Miami. At MyBrickell and Millecento, all units are under contract, while Apogee Beach has only two apartments out of 49 still available.

• An apartment in Chicago soars above all others. An 89th-�oor penthouse at Trump International Hotel and Tower, about 1,200 feet above the ground, is the tallest residence in North America, and perhaps in the world. �e $32 million price tag makes it the highest-priced apartment in the Midwest. Despite this high price tag, Chicago has one of the most a�ordable housing inventories in the nation. As in other markets like Dallas, there has been a reduction in inventory due to the lack of new construction and the absorption of existing product.


Multiple bid situations and few days on the market on appropriately priced homes in desirable neighborhoods have been a key indicator. It appears price increases are on the horizon if inventory remains low and builders not able to meet demand.

• Nearly every economic indicator points to a stronger real estate market across the Washington DC Metropolitan Area in 2013 than the previous year. �ere are two driving factors to this prediction: a shortage of inventory and a very strong job market. Real Estate Business Intelligence, a market research �rm that analyzes data in our local multiple listing service, recently reported that inventory across the region is at the lowest point in nearly a decade. Simultaneously, Economist Stephen Fuller, director for the George Mason University's Center for Regional Analysis, predicts that the Washington economy will add 281,000 jobs by 2017. Less supply and increased demand from job creation will once again cause prices to rise across the region. As part of the American Taxpayer Relief Act of 2012, or commonly referred to as Fiscal Cli� bill, decisions regarding spending cuts and the sequestration were delayed until March 2013. Because many of Washington's high-paying jobs are fueled by government contracting assignments, many defense contractors and consulting practices are delaying hiring decisions until they have a clearer understanding of how proposed cuts may impact their individual �rms. �is may weaken buyer con�dence at the high-end of the market (over $2 million USD) in the �rst half of 2013 as business executives restrain from purchasing new homes.

Washington has always been an internationally diverse city, typi�ed by the 176 foreign countries that have embassies in the capital. But over the last two years, an increasing number of foreign business leaders are purchasing trophy residential real estate assets in Washington, due to the city's "recession-proof " economy and a desire to own property close to the center of global geopolitical power. Today's buyers, both foreign and national, increasingly prefer move-in-ready properties. �ere is little interest amongst active buyers to purchase homes that will require exhaustive renovations, which is fueling a healthy new-construction market in the luxury category.

• Silicon Valley led the pack for the real estate recovery on the west coast, particularly as it pertains to the luxury market. Lack of inventory may potentially become a major issue as it is causing prices to elevate to levels that may cause prices to drop substantially if (when) interest rates rise. Foreign buyers, mostly from Paci�c Rim countries, are rushing to buy luxury properties, cash in hand. �e Facebook IPO supported sales during the �rst half of 2012 as many homebuyers rushed to the market to “beat out” the newly minted millionaires. In the second half, the threat of higher capital gains taxes pushed senior sellers to sell before 2013. �e depleted inventories kept overall sales volume down but resulted in higher prices.

• In the last quarter of 2012, market conditions in Telluride were quite strong during what is typically a slower time of year, with nearly $248 million in closed sales and pending contracts. Some notable statistics for the period include 60 sales over $1 million, 11 sales over $4 million and 6 sales over $7 million.

Signi�cant sales included two Mountain Village homes at $9.9 million and $12.3 million, two ranch sales of $12 million and $17 million and two penthouses for $4.7 million and $3.4 million. Average selling price for properties in and around the resort area was roughly $2.27 million, and average selling prices for single family homes homes in the historic town of Telluride have climbed to $1,027 per square foot. Notable buyers include country music legend George Strait and singer/songwriter Jewel who both purchased single-family homes in the area. �e highest quality assets o�ering perceived value in the best locations, be it ski-in/ ski-out locations or in the heart of our historic core area continue to generate the most interest and strongest pricing.

• �e Aspen market �nished 2012 extremely strong. December was the best single month in more four years, and 2012 was the best year since 2007. As a resort market that had signi�cant appreciation during the boom years, and even strong appreciation during “regular” times, there are many sellers with signi�cant gains that were motivated to close by the end of 2012, hence the �urry of business in the last quarter of 2012. Inventory is moving, and developers are stepping back into the picture buying land and proceeding with new single family development projects.

are billionaires coming from Russia, China and other Eastern European countries do not seem concerned about political implications and appear to feel that Italy has turned the corner �nancially.

• In Sweden, the expectation for 2013 is that selling prices will be close to asking price. In the last �ve years, prices for apartments in Stockholm have increased an average of 7 percent and over the last ten years there has been an average increase of about 76 percent. �e market still belongs to the buyers, and it has stabilized since the economic upheaval in 2008.

• Robust annual rates of price growth were reported through most months of 2012 in Toronto. Price growth was strongest for low-rise homes, including singles, semis and townhouses. Despite a dip in sales, market conditions remained tight for these home types with substantial competition between buyers. Prices for 2013 are expected to stay very strong and, if anything, they will be just a bit so�er. �e lack of inventory continues to drive the market in the central core of Toronto. Short of having a

complete collapse of the world economy, Toronto prices should stay stable in the next year. We have very good fundamentals: disciplined lending practices, low interest rates, a steady economy with low unemployment and strong immigration. Job growth is expected to increase 3.0%, gross domestic product should gain 3.5% and the city’s educated workforce is expected to see its personal income grow another 3.6 %. Sales in 2012 went up resulting in low inventories and a continued seller’s market. Condos are still a major force.

Canada

• As more wealthy Asians seek to buy property overseas as an investment or short-term resi-dence, 57 percent of wealthy investors named London as their top target market for property purchases, according to consulting �rm VPC Asia Paci�c. In a recent report, the real estate con-sultants Jones Lang LaSalle identi�ed a growing breed of wealthy property investors whose pur-chasing decisions had been driven by familial and educational ties. Asian buyers like to educate

their children in the U.K. and o�en will buy a property rather than rent.

• In Rome, properties that are selling are priced at over $5 million EUROS. and the expec-tation is that in 2013 most sales will be at the high end. Last year saw the sale of a $35 million EURO property while mid-range properties (those prices at $1 to $5 million) have been very slow. Upcoming elections in February may give some Italian buyers pause, but many new buyers who

Europe


• At the end of 2012, Bermuda had its �rst change of government in fourteen years. �e new government is very pro business and will be welcoming to new investment, hotel development, residency policies and real estate policy. Expect to see increased interest in luxury property in Bermuda capitalizing on the changes that may be made, the tax neutral status and Bermuda’s proximity to the United States and Europe.

Caribbeanare billionaires coming from Russia, China and other Eastern European countries do not seem concerned about political implications and appear to feel that Italy has turned the corner �nancially.

• In Sweden, the expectation for 2013 is that selling prices will be close to asking price. In the last �ve years, prices for apartments in Stockholm have increased an average of 7 percent and over the last ten years there has been an average increase of about 76 percent. �e market still belongs to the buyers, and it has stabilized since the economic upheaval in 2008.

• In a surprise move in October 2012 to curb skyrocketing property prices, the Hong Kong government announced the immediate implementation of a 15 percent property tax on all home purchases – by foreigners. �e Hong Kong government sees the tax as a necessary policy to protect the city’s economy from an in�ating property bubble. In only the �rst nine months of this year, average property prices in Hong Kong jumped 20 percent. Since the start of 2010, the price ballooned 50 percent. �e city is pricier than Singapore, London, Tokyo and Paris.


ABOUT ROBBIE BRIGGS

CEO Robbie Briggs independently owns and operates Briggs Freeman Sotheby’s International Realty in Dallas, Texas. Briggs is a member of the Sotheby’s International Realty Global Partnership, a worldwide network of 40 top agents and Brokers.

• As more wealthy Asians seek to buy property overseas as an investment or short-term resi-dence, 57 percent of wealthy investors named London as their top target market for property purchases, according to consulting �rm VPC Asia Paci�c. In a recent report, the real estate con-sultants Jones Lang LaSalle identi�ed a growing breed of wealthy property investors whose pur-chasing decisions had been driven by familial and educational ties. Asian buyers like to educate

their children in the U.K. and o�en will buy a property rather than rent.

• In Rome, properties that are selling are priced at over $5 million EUROS. and the expec-tation is that in 2013 most sales will be at the high end. Last year saw the sale of a $35 million EURO property while mid-range properties (those prices at $1 to $5 million) have been very slow. Upcoming elections in February may give some Italian buyers pause, but many new buyers who Asia

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