New York's new condo market

The current wave of new condos in Manhattan is commanding premium prices.  According to The Real Deal's article Ranking The Hot New Condos, 47 percent of condos launched within the past 12 months have asking prices of above $3,000 per sqft.  Most are focused on larger 2-5 bedroom residences.


However, the largest demand is in the < $5 million, < $2,000 per sqft price point.  Less than 30 percent of the newly launched condos fit this criteria.

The reason behind these high prices is the high cost of land acquisition by developers.  Land used to be purchased at $400 per sqft a few years ago.  Now developers are paying $700 per sqft.  With overall development costs, these condos would need to sell at $2,500 per sqft or more.

Over half of the new units are located Downtown, according to Corcoran Sunshine.  There is also a super luxury oversupply on 57 St between 2nd Ave and 8th Ave.  For example, One 57, 432 Park, 225 West 57, 252 West 57 and 111 West 57 St.

The top five most expensive new development launches are:
432 Park Ave, $6,894 psf
One57, $6,888 psf
22 Central Park South, $5,607 psf
One Madison Park, $5,061 psf
Carlton House, $4,821 psf

 

Wei Min Tan is a Manhattan New York condo specialist focused on investors and foreign buyers looking to buy for long term portfolio diversification.  He is one of Manhattan's experts on investing in luxury residential condos and has been interviewed by CNN, The Wall Street Journal and New York Times on the subject.