""I think it's a horrible idea that's going to backfire," says Rachel Glazer, a Compass broker with a history of eight-figure sales across Manhattan. Trophy apartments like the ones the Ken Griffins of the world seem to collect make up a 'good chunk' of Glazer's business. She believes the tax will mean fewer sales, translating into fewer transfer and mansion taxes. The general mood in her corner of the market was clear: 'I'm not happy. Buyers are not happy.'"
"Noble Black, a broker at Corcoran who not too long ago sold a penthouse at 520 Park Avenue for $73 million, agrees. 'Everyone is talking about it,' Black says. 'I'm not saying this is going to kill the city, but it's a very negative proposal and poorly thought through.' He has already gotten calls from at least one pied-à-terre owner asking about selling, but Black advised them to wait and see."
Kathy Hochul has proposed a surcharge on pied-à-terres in New York City valued at $5 million or more, aiming to generate $500 million annually. While the proposal has public support, luxury market brokers express concern that it may lead to fewer sales and decreased tax revenue. Brokers like Rachel Glazer and Noble Black warn that the tax could negatively impact property values and discourage wealthy buyers from investing in the city, with some already considering selling their properties.
Read at Curbed
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