Billionaires' RowinNew York Cityis known for having some of the most expensive residentialreal estatein the world.The set of supertall luxury skyscrapers south of Central Park has attracted wealthy buyers including Michael Dell and hedge-fund billionaire Ken Griffin.But two full-time real-estate investors say Billionaires' Row is not a good investment due to the surplus of inventory and other economic factors.Richard and Monica Weinberg of the Terrace Tower Group told Business Insider the best investments are walkable neighborhoods with smaller streets where New Yorkers want to live, like NoHo, the West Village, Tribeca, and Chelsea.If they did ever buy in Midtown, they would consider buying in 220 Central Park South on Billionaires' Row, where Griffin bought a $238 million penthouse in January.Visit Business Insider's homepage for more stories.Billionaires' Row in New York City, an area surrounding 57th Street south of Central Park, has some of the most expensive real estate in the world. The set of ultra-luxury skyscrapers sprouting up there has seen record-setting sales in recent years.In 2014, Dell Technologies founder and CEO Michael Dell spent about $100 million on a penthouse in the One57 tower. And in January 2019, billionaire hedge-fund manager Ken Griffin dropped $238 million on a spread at 220 Central Park South, which contributed to making Central Park Souththe most expensive street in New York City in 2019.But as the US luxury real-estate market cools, the super-pricey Billionaires' Row condos may no longer hold the same appeal as investment properties.Billionaires' Row may not be the best NYC neighborhood to invest in real estate, according to 2 full-time investorsRichard and Monica Weinberg of the Terrace Tower Group in Australia started investing in New York City about a decade ago, focusing on properties in the $2 million to $15 million range."I prefer a hyper-local approach, concentrating on neighborhoods that have interesting histories and [are] well-positioned to provide for current housing demand and capture future growth," Monica told Business Insider.According to the Weinbergs, Billionaires' Row doesn't fit that bill."From my perspective, I do not believe Billionaires' Row would make for a good investment," Monica said.In Midtown, where Billionaires' Row is located, there's too much "traffic, noise, hassle, and retail," she said. "Midtown is great if you're in the city for a short while, but if I were to live there, I would most likely prefer the west side of downtown. The streets are smaller with a village feel and little pedestrian traffic."Billionaires' Row has a glut of super-pricey condos in a slowing luxury real-estate marketThe ritzy area is a "tough micro market" due to an influx of inventory and other economic factors, the Weinbergs said.There certainly is a surplus of inventory on Billionaires' Row, where at least eight luxury towersrecently completed or to be finished in the next couple of yearsare trying to sell similar ultra-prime real-estate at the same time in the same area.The flurry of luxury condo construction on Billionaires' Row in recent years has resulted in "resulting in an oversupply of lavish properties at a time when those buyers have all but disappeared," Oshrat Carmiel reported for Bloomberg this month.Curbed New York reported in April that more than 40% of the pricey Billionaires' Row condos were unsold, and some have been on the market for years, according to real-estate appraiser Jonathan Miller.The glut of luxury real-estate is not limited to New York City. Across the US, mansions and penthouses are lingering on the market, largely thanks to decreasing interest from wealthy foreign buyers, Business Insider's Libertina Brandt recently reported.The best investment neighborhoods are downtown, walkable neighborhoods like NoHo, the West Village, Tribeca, and Chelsea"My personal preference is for Noho, West Village, Tribeca, and Chelsea," Monica said. "Perry, West 12th and Leroy streets are also perfect examples. These areas have shown relative strength during times of weakness."In those neighborhoods, the streets are smaller "with a village feel," she added.One of the Weinbergs' properties that exemplifies their investment approach is a one-bedroom West Village condo in the Robert A.M. Stern-designed Superior Ink building, which they bought around the time the building was built in 2009. They're selling it for $2.75 million.If the Weinbergs ever choose a Midtown building to invest in, however, they would probably choose 220 Central Park South, where Griffin bought a $238 million penthouse."220, much like 15 Central Park West, has the best location directly across the park that I would prefer if living there," Monica said.220 Central Park South remains Billionaires' Row's best-selling building, with an estimated 80% of its condos sold or in contract.SEE ALSO:I spent a day on NYC's Billionaires' Row. Here's your ultimate guide to one of the city's glitziest streets, which borders Central Park and is home to the most expensive apartment ever sold in the US.DON'T MISS:Billionaire Ken Griffin just bought a $238 million penthouse ' and it's the most expensive home ever sold in the USJoin the conversation about this storyNOW WATCH: Traditional Japanese swords can take over 18 months to create ' here's what makes them so special
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