In the city of New York, condominium units in buildings emblazoned with former president Donald Trump's name are underperforming and selling less than buildings that have removed his brand, an analysis found.
Trump had recently been the subject of a New York civil fraud lawsuit that accused him of artificially inflating the value of his real estate holdings to secure better loans and deals. During the trial, one of Trump's rebuttals was that he was worth "hundreds and hundreds of millions" and that his brand was "worth billions."
However, an analysis performed by the New York Times found that condominiums in high-rise buildings in Manhattan emblazoned with Trump's name have sold at a 1% premium compared with similar units.
Additionally, a year after he was elected president, condos in Trump-branded buildings sold 4% less than those without his brand, making them a "bargain" among the city's luxury properties, the outlet noted, citing professor of real estate Van Nieuwerburgh.
The trend also affected properties in the Trump Tower on Fifth Avenue, which saw the average price per square foot of its condo units fall by 49% since 2013.
Removing Trump's Brand Raised Property Value
As of Sunday, seven buildings in Manhattan still bear the Trump logo. On average, the price per square foot in these properties dropped 23% between 2013 and 2023, the Times reported, citing data from real estate listing website CityRealty.
In comparison, condominium units in four buildings where the Trump logo was removed have seen their values shoot up by 9% between 2013 and 2023. This outpaced the Manhattan condominium market, which only saw an 8% increase in prices over the same period.
Are All Trump-Branded Properties Seeing Declining Values?
It is unclear whether all properties bearing Trump's logo are seeing declining market values. The data analyzed by the outlet was exclusively for Manhattan. The outlet noted that properties emblazoned with the former president's logo in states where a majority of voters align to Trump's politics could be faring better.
It is also unclear how the recent decision in the New York civil fraud case, where a judge ordered Trump to pay a fine of over $350 million and banned him from conducting business in the state, will affect the value of properties bearing his brand.
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