econintersect.com
       
  

FREE NEWSLETTER: Econintersect sends a nightly newsletter highlighting news events of the day, and providing a summary of new articles posted on the website. Econintersect will not sell or pass your email address to others per our privacy policy. You can cancel this subscription at any time by selecting the unsubscribing link in the footer of each email.



posted on 08 September 2016

Global Elite Are Cooling On New York

by Michael Haltman

After recently examining the decline of the nosebleed-level apartment rents across U.S. markets like New York City ('Have Apartment Rentals Topped Out?'), today the focus is on the stalling sales of sky-high priced Manhattan apartments along 'Billionaires Row' on 57th Street!

Click for larger image.

If you were interested in throwing a low-ball bid at an apartment in Manhattan with an asking price of $100 million, now might be the time to do it!

But in the lower price range, especially under $1 million, properties are still being sold. It seems that the global elite are no longer chomping at the bit to live in the Big Apple skyline.

The New York Times has the latest:

High-End Condos for the Merely Affluent by Kim Velsey

The mood on Billionaire's Row along 57th Street has turned grim of late, with condominium sales along the strip slowing to a near halt. Developers of superluxe skyscrapers are chopping up penthouses and, in some cases, scrapping plans altogether.

It's an entirely different story at 70 Charlton, a condominium by the Extell Development Company in Hudson Square, where more than half the apartments were priced under $3 million. Sales have been anything but sluggish there, with one-bedrooms, which started at $995,000, and two-bedrooms moving particularly fast.

It's a trend that developers and brokers say has been mirrored around the city: While the demand for $100 million mansions in the sky has all but vanished, sales at the other end of the new development market have been brisk.

"People will line up around the corner for an apartment for under $1 million," said Elaine Diratz, senior vice president at Extell Marketing Group.

As of June, condos priced $500,000 to $999,000 took, on average, 4.7 months to sell - substantially below the marketwide average of 8.6 months over the last 10 years. They sold more than five times as fast as condos over $10 million, which were moving at an average of 25.7 months, according to an analysis done by the appraisal firm Miller Samuel.

High-end buyers have not necessarily been exhausted, but you won't find many willing to pay prices from two years ago, said Jonathan J. Miller, the president of Miller Samuel. "Values dropped, but prices didn't," he said. "We're moving out of a market that's solely focused on superluxury, and for the developers who can get the formula right, demand for entry- and middle-income new development - the heralded $1 million to $3 million - can't be satiated."

Value, a word rarely heard several years back when almost every developer in the city was looking to cash in on the trophy craze, is the catchword of the day. And though "affordable luxury," the industry's preferred term for such projects, is hardly an apt description for apartments that remain beyond reach for most New Yorkers, developers are finding a deep pool of affluent buyers who have spent the last several years shut out of a market that catered to the global elite.

While new developments, as a rule, try to fill their units with luxury finishes, those priced at the lower end often find an edge by offering smaller apartments in areas where new developments are otherwise scarce.

Apartments at 70 Charlton have high-end finishes in line with Extell's most elevated product, Ms. Diratz said, and amenities like a saltwater swimming pool and a birch tree arbor, but the location in a neighborhood only recently rezoned for residential allows for far lower prices. And whereas most two-bedrooms at One57 clock in at more than 2,000 square feet, those at 70 Charlton are significantly smaller, at 1,071 to 1,622 square feet - "not tiny" but "efficient."

"These aspirational buyers don't want to compromise on high design and amenities," said Fredrik Eklund, an associate broker with Douglas Elliman Real Estate who, along with John Gomes, is overseeing sales at Steiner East Village, an 82-unit condominium at East 12th Street and Avenue A with amenities like a library and an indoor swimming pool. Apartments here are also "efficient," Mr. Eklund said, and have ceilings over 10½ feet, Paris Forino-designed interiors and five-piece master baths with two sinks, a shower and a separate tub.

And while prices in the building, which average $2,100 a square foot, are hardly a bargain in the East Village, which has very little new development, they can seem inviting compared with other downtown neighborhoods. Mr. Eklund said the building has drawn a number of buyers from the West Village and TriBeCa, some of the most expensive areas in the city, where inventory under $5 million is hard to come by.

"I think we're setting a new high market for condos in the East Village, but compared to the rest of downtown, people understand that they're getting a value for Manhattan," said Douglas C. Steiner, the chairman of Steiner NYC, which is developing the building.

Read the rest of the article at The New York Times here.

>>>>> Scroll down to view and make comments <<<<<<

Click here for Historical Opinion Post Listing










Make a Comment

Econintersect wants your comments, data and opinion on the articles posted.  As the internet is a "war zone" of trolls, hackers and spammers - Econintersect must balance its defences against ease of commenting.  We have joined with Livefyre to manage our comment streams.

To comment, using Livefyre just click the "Sign In" button at the top-left corner of the comment box below. You can create a commenting account using your favorite social network such as Twitter, Facebook, Google+, LinkedIn or Open ID - or open a Livefyre account using your email address.



You can also comment using Facebook directly using he comment block below.





Econintersect Opinion


search_box

Print this page or create a PDF file of this page
Print Friendly and PDF


The growing use of ad blocking software is creating a shortfall in covering our fixed expenses. Please consider a donation to Econintersect to allow continuing output of quality and balanced financial and economic news and analysis.


Take a look at what is going on inside of Econintersect.com
Main Home
Analysis Blog
The Theory of the Monetary Circuit: A Critique
The Expected Effects of Petitions to Improve the Monetary System
News Blog
Early Headlines: Asia Stocks Up, Oil Surges, OPEC Cuts Production, Student Loan Woes Mount, Trump Still Close, Aleppo Hospitals Bombed, Huge Wind Storm In Oz And More
The World's Most Sustainable Cities
Big Sam In Bad Company
Other Ways To Spend Your AirPod Budget
Crashing Space Station Shows Why China Must Start To Collaborate In Orbit
NFL Edges Towards A Full House In London
What We Read Today 28 September 2016
October 2016 Economic Forecast: Outlook Insignificantly Declines But Little Economic Strength Entering 4Q2016
1 Minute. 34 Seconds. In The U.S., That's All It Takes To Register To Vote. A Single Registration Lasts A Lifetime Of Elections. We've Made It Easy For You Here: Http://g.co/elections/134
Durable Goods New Orders Unchanged in August 2016
90% Rally In Sugar Prices Since Late 2015
U.S. Real Wage Growth: Slowing Down With Age - Part 2 Of 2
Infographic Of The Day: Four Tips To Grow Wealth
Investing Blog
Will Deutsche Bank Survive?
Banks Of Absurdity
Opinion Blog
The Federal Reserve Note
Trump, Trade And Taxes
Precious Metals Blog
War On Cash Turns To $20, $50, And $100 Bills
Live Markets
28Sep2016 Market Close: Wall Street Closes Higher After A Sluggish Start In The Morning, Crude Prices Close Higher In Face Of GS Saying Crude Will Fall, Indicators Neutral
Amazon Books & More






.... and keep up with economic news using our dynamic economic newspapers with the largest international coverage on the internet
Asia / Pacific
Europe
Middle East / Africa
Americas
USA Government



Crowdfunding ....






























 navigate econintersect.com

Blogs

Analysis Blog
News Blog
Investing Blog
Opinion Blog
Precious Metals Blog
Markets Blog
Video of the Day
Weather

Newspapers

Asia / Pacific
Europe
Middle East / Africa
Americas
USA Government
     

RSS Feeds / Social Media

Combined Econintersect Feed
Google+
Facebook
Twitter
Digg

Free Newsletter

Marketplace - Books & More

Economic Forecast

Content Contribution

Contact

About

  Top Economics Site

Investing.com Contributor TalkMarkets Contributor Finance Blogs Free PageRank Checker Active Search Results Google+

This Web Page by Steven Hansen ---- Copyright 2010 - 2016 Econintersect LLC - all rights reserved