An Amtrak train in New Buffalo, Mich

Anyone who has not been living in a cave in Afghanistan for the past year will likely have noticed a “slowdown,” in the real estate market, and the high-end luxury market is not completely immune. So, it is refreshing to see a developer doing something to encourage sales that is not strictly limited to price-cutting. Realistic pricing of luxury real estate is, of course, important, but added value may be the key.

Jimmy Gierczyk, a real estate developer in New Buffalo, Michigan has taken an “outside the box,” approach and feels that of you want to get ahead in luxury real estate marketing…………

You need a train station.

Not content to wait for the sloth-like development approach of Amtrak, Mr. Gierczyk has taken the unusual step of building his own train station in the center of his luxury townhouse development. Ground was broken on October 31, and the plans are to have the station complete before Christmas. Total cost of the 250-foot platform along with 250 parking lots is around $1.5 million.

You can walk out the door of my condominium and you can catch the train.

It has taken five years to finally get the platform started, and Mr. Gierczyk ran into a few difficulties along the way when money had to be refunded to buyers after interminable delays by Amtrak meant they had bought luxury condos but there was no station. In the end, he made the sensible decision to build the thing himself.

Once fully operational, the station will see four stops a day, in and out of Chicago, with the commute taking just over an hour.

I personally think this is a fantastic attitude, and one likely to ensure the developer’s continued success even through the tough times facing the industry. A swift visit to the Gierczyk Development website also suggests a sense of humor. Another must as far as I am concerned at the moment.

Gierczyk Development

The Daily Show executive producer (and former writer) David Javerbaum and wife Debra bought a fifth-floor apartment in the Yves Chelsea. They paid $3,650,000 for their new home at 127 Seventh Ave.

Yves Chelsea stands at 14 stories, with room for 41 families, according to public information. And some units offer a landscaped outdoor space, which utilizes the Quebert-like setbacks on sections of the building. It looks like all units have floor-to-ceiling widows. Other information we could find mentions all-glass cabinets and countertops in the kitchen and access to concierge service.

Pictures in late August showed the building as still awaiting completion - it still had a crane sitting atop the final floors.

Javerbaum started on The Daily Show as a writer, becoming executive producer in 2007, according to the movie bible (IMDb). He has also written for the Academy Awards a couple of times and served as a consultant for The Colbert Report.

[cityfile]

Are you a winter person? The thought of the beach and tropical island fill you with dread? Consider becoming one of the band of enthusiasts who enjoy cold weather cruising. Get up close and personal with polar bears and penguins rather than deck chairs and water skis. Here’s a look at some of the less usual cold weather cruising options.

Cruising by Zodiac in the Antarctic

Well Alaska would be most people’s first thought if you looking for an interesting cruise out of the heat. Alaska has become a bit like the Caribbean though with so many cruise ships you wonder if a traffic jam develops certain times the of year in the Inside Passage. Take the road less travelled and consider going south and cruising the Antarctic Peninsular instead.

Antarctic Peninsular cruises start out of Ushuaia, a remote, but pleasant town at the very southern tip of Argentina. A shorter 10-day trip will see you cruise at sea for 2 days and then make landfall along Antarctic Peninsular about five times. No shopping or bright lights here - this is as remote as gets and there are no permanent settlements in Antarctica. Longer trips of around 3-weeks will “round the Horn”, that’s Cape Horn, and cover the South Georgia Islands one of the great wildlife spots in the world and the remote Falkland Islands (or the Islas Malvinas as the Argentinians who won the war with the British will point out). Wildlife include seals, penguins of all sizes and shapes but particularly the Emperor penguin. Whales are often seen as well as sea lions. Albatross nest in many areas and form spectacular rookeries.

If you prefer to stay north of the equator consider the high Arctic cruises. These cruises are generally focused on either western Greenland and arctic Canada or alternatively Eastern Greenland and Spitsbergen. For the truly adventurous there is the option of an icebreaker across the top of Siberia via the fabled Northeast passage: though we are not sure that this one is luxury cruising! These are the cruises to go on if you are determined to see polar bear - they don’t live in Antarctic. Greenland and Canada have fascinating local tribal histories too: while unfortunately the Antarctic doesn’t really have this human colour.

North or south though there are some more interesting options than souvenir shopping in Juneau in Alaska!

Photo Credit and more information on Antarctic Cruises

One Brooklyn Bridge Park, a luxury waterfront condo complex in New York, has been reduced in price in an effort to start the sales ball rolling once again

One Brooklyn Bridge Park Unsold

I understand the developers have been reluctant to reduce prices because of the potential cost to early buyers. But, the market has spoken and the complex remains two-thirds unsold after nearly 18 months on the market. Prices have been reduced by between 3 and 9%, although prices in Brooklyn have fallen 11% this year, so it remains to be seen whether this level of decrease will make any difference.

Robert Levine, CEO of RAL C&A LLC, the developer said,

We have adjusted pricing on select units to be more consistent to our initial offering prices in February of 2007. This creates some great incentives and opportunities to prospective buyers.

But with prices across the USA returning to levels more in line with several years prior to 2007, with no end in sight currently, this may not be enough of an incentive. As the financial institutions begin a return to more rational lending practices, a logical consequence of this is a return to more rational housing prices. As of this week, around 300 of the 449 units in One Brooklyn Bridge Park remain unsold.

One Brooklyn Bridge Park

Luxury Property News

Smaller luxury real estate firms are being absorbed by larger rivals as the market goes through a major shakeup. SLT today reports that Janet McAfee Inc has taken over Edward L. Bakewell Inc, in St Louis. Both firms serve the luxury property segment in St. Louis and St. Louis county. This trend is continuing around the world as real estate agencies come to terms with the current financial situation. Richard Worth estate agents in Wokingham, England was rescued in another takeover, by Hampton’s international. In the same vein, Damac, a major luxury builder in Dubai are shedding staff as it becomes clear that Dubai is not immune to the downturn, with property wire reporting that more than 50% of real estate agents in Dubai completed no sales in the last month, and 24% made just one sale.

Luxury property developers, Toll brothers, after reporting another substantial drop in orders, have expanded their “rent to own,” program to include Hoboken, New Jersey. This model is also being taken up around the world by cash-rich developers as an alternative to cutting prices. Smaller developers are resorting to price cuts in an attempt to stimulate the market, with a luxury property developer in Slovakia dropping prices by 40% overnight. Another tack being taken to attempt to induce buyers to commit is by David Berger of Fifth Square partners. A price protection guarantee. If prices should fall in between signing and closing, the buyer is guaranteed the lowest price available to other buyers at other developements. A little more inventive that their last pre-election, guarantee - that if a buyer signed and Barack Obama did not win the election, they were guaranteed the right to back out of the sale. Although my current favorite is Kipton Davis, a Prudential Douglas Elliman broker - offering wine and whiskey on a condo tour of four TriBeCa buildings. “Alcohol brings everyone together,” said Ms. Davis.

Dr. Richarrd Ragatz, a real estate researcher, is predicting that luxury fractional ownership of vacation homes will be the first segment of the market to recover.

The Seattle Times reports that home sales in Washington State dropped by the largest decline since records began in 1994 - 10.4%, and believe that the luxury sector is most over-supplied, suggesting prices will stabilise for entry level homes well before the luxury market. The International Herald Tribune reports that the Hong Kong property market is plunging after five straight years of dramatic growth.

Clearly, this is a good time for prospective buyers with cash or financing in place, but it seems these are few and far between at the moment, with most still waiting to see how far things will fall before making a commitment..

Where in world do you think this photo is from? Sparkling clear lake reflecting the snow capped peaks of active volcanoes, impossibly green fields in the distance. Looks like there should be a hobbit around the next corner - but no this isn’t New Zealand, this is Hokkaido - a very different side of Japan and a fascinating luxury destination.

Lake Shikotsuko, Hokkaido Japan

Photo Credit
Hope a quick flight north from Narita, Tokyo’s busy airport and you will be in Hokkaido and a different world from ultra-modern, ultra-urban Tokyo. Only 150 years ago Hokkaido was a inhospitable trading post. Mountain bears guarded the passes and winter temperatures dropped to -30C. Well the bears are in retreat and central heating is common in Hokkaido so its not nearly as difficult to travel in: in fact its become a winter playground - especially for Australians looking for reliable snow. The snow is perfectly complemented by hot springs and warm sake - a perfect combination really.

Hot Springs, Hokkaido, Japan

Photo Credit

In summer the scenic mountain hikes and fly-fishing makes Hokkaido sound just like North Island New Zealand In fact the two island’s share a very similar geology both being on active tectonic plate margins which explains the volcanoes and the geysers.

Though you know you are in Japan when the local produce includes not only rich yellow butter but hand-made ubon and ramen noodles compete with luxury chocolates for the tourist’s dollar (or yen). The Cherry Blossoms of Japan combine with the fantastic lavendar fields to provide some extraordinarily coloured landscapes.

Lavender Fields, Hokkaido, Japan

Photo Credit

Happily to the bears are not gone either. In the north-eastern Shiretoko Peninsula complete with white-tailed sea eagles and Sika deer is a UNESCO World Heritage site, prosaically named Bear Mountain. The 1 hectares of parkland is home to the 250kg giants who call it home. If you are visiting in the cooler months don’t forget to visit the Sapporo Snow Show either which has some of the most amazing sculptures anywhere.

Hokkaido seems almost a surreal perfect holiday destination. Low to non-existent crime, a fascinating culture definitely different from what we are used to (remember that bath houses are not “clothes optional” - they are “naked is compulsory”), fantastic scenery, fascinating wildlife, excellent sporting opportunities and great healthy food. Hokkaido is definitely a different and exciting luxury destination

Sapporo Ice Sculpture of the Taj Mahal

Photo Credit

Most expensive iPhone earphones

If listening to property developers complain about how unfair the government bailout’s have been to them and financiers giving up a whole year’s bonuses, after helping to push the entire world into economic recession is starting to get you down, fear not, I have the perfect picker-upper.

The world’s most expensive iPhone earphones (or any other mp3 player). 18 carat yellow gold, encrusted with 59, highest-quality pave’ set diamonds and available exclusively from Clive Ranger in the UK. Created by Casa Gi, only one set is for sale, at a price of just £3,499 or $5,246 (depending which way the dollar bounces tomorrow.)

So, if the financial crisis has passed you by, or you are an investment banker who still hasn’t spent last year’s multi-million dollar bonus, you know where to find the perfect gift. Disappointingly, the plug on the other end is not gold plated

For those of us not quite lucky enough to be able to stretch to earphones of this price bracket, there are some more affordable iPhone earphones available here.

Clive Ranger