New York s Midtown suffers property correction
New York’s Midtown suffers property correction
9/8/17, 11:28 AM
North America Property
New York’s Midtown suffers property correction Manhattan’s high-end glut means developers have to be more realistic on pricing
New York’s Central Park © Oleg Korshakov/Getty Images/Moment RM
5 HOURS AGO by: Troy McMullen
This year, for the first time ever, the share of properties in Manhattan priced above $10m was equal to the share of properties priced below $500,000 — with both at roughly 6 per cent, according to a report by estate agency Stribling. Garrett Derderian, Stribling’s director of data and reporting, calls it “the most vivid indication of how the market has been inflated by luxury listings”. But estate agents trying to unload the growing overflow of pricey apartments call it a glut. “We’ve simply had too much building of luxury products in the city,” says Robert Dankner, https://www.ft.com/content/cb4f727e-8e3b-11e7-9580-c651950d3672
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New York’s Midtown suffers property correction
9/8/17, 11:28 AM
president of Prime Manhattan Residential. “There’s a penthouse glut and now we’re seeing a penthouse correction.” That correction is forcing developers to alter their building strategies as well as their prices. Gone are the days of bidding wars and what Jonathan Miller, chief executive at appraisal firm Miller Samuel, called “aspirational pricing”. In the second quarter of this year, the average high-end home in Manhattan sold at a 10.4 per cent discount, according to a report from Douglas Elliman and Miller Samuel. The companies define the high-end market as the top 10 per cent of all sales. In 2015, One57, a 90-storey tower in Midtown, set the record for the city’s priciest deal, when a penthouse sold for $100.5m. Today, six years after sales began, the building still has apartments on the market. Also in Midtown, a condominium on the 88th floor of 432 Park Avenue sold at the end of last year for $60.9m, a 20 per cent markdown from what developers initially sought. Developers “are becoming more realistic with pricing”, says Charlie Attias, an estate agent with Corcoran Real Estate who handles resales at One57. “They’re realising that with so many new units coming online they need to price properties more in line with market realities.”
https://www.ft.com/content/cb4f727e-8e3b-11e7-9580-c651950d3672
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New York’s Midtown suffers property correction
9/8/17, 11:28 AM
Condos in the 53W53 tower will start at $3.26m © HayesDavidson
In 2017’s second quarter, condo inventory in the borough stood at around 5,900 — up 35 per cent year on year, according to Halstead Property. And even more high-priced apartments are in the pipeline. By the time it is completed next year, 53W53, a condo tower under construction in Midtown, will rise 1,050ft next door to the Museum of Modern Art. The slender skyscraper — designed by the French architect Jean Nouvel — includes prices that rank among the most expensive in the city, ranging from $3.26m for a one-bedroom apartment to $70m for a penthouse. Also in Midtown, The Bryant, designed by David Chipperfield, includes one to fourbedroom residences and penthouses priced from $2.5m to $16.3m. The property has sold half of its 57 apartments, according to developer HFZ Capital Group. But, for struggling agents, respite might be just around the corner. The new projects arrive just as a change appears to be coming to Manhattan’s property market: sales seem to be growing again. In the second quarter of this year, the number of closed sales in Manhattan rose 15.2 per cent year on year, according to Douglas Elliman data. At the same time, the median price rose 7.3 per cent, reaching a record $1.19m.
https://www.ft.com/content/cb4f727e-8e3b-11e7-9580-c651950d3672
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New York’s Midtown suffers property correction
9/8/17, 11:28 AM
The Bryant has one to four-bedroom residences priced from $2.5m to $16.3m
There was also notable sales activity at the top end of the market. CityRealty, the property company, examined sale prices in what it considers to be the top 100 condo buildings in Manhattan. Over the year to June, they recorded an average price of $14.1m, with one unit at 432 Park Avenue selling for $65.7m. Agents, however, are unlikely to be heralding the return of the super-prime market just yet. Gabby Warshawer, research director at CityRealty, says that while the average price per square foot in the top 100 condos rose 9 per cent to $2,788, the number of units sold in these buildings actually fell by 3 per cent. “While it’s a very slight dip, it points to [the fact that] fewer buyers are actually closing on apartments in buildings covered in the index,” she says. “Fewer buyers were willing to sign on the dotted line.”
Buying guide • The median price for a Manhattan apartment reached an all-time high of $1.2m in the second quarter of this year, according to Douglas Elliman and Miller Samuel Appraisers • Just over 2,600 condos are due to come on the Manhattan market this year compared with https://www.ft.com/content/cb4f727e-8e3b-11e7-9580-c651950d3672
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New York’s Midtown suffers property correction
9/8/17, 11:28 AM
2,457 in 2016, according to a report by Halstead, the real estate company • Property commission in Manhattan is typically 6 per cent of the sale price
What you can buy for . . . $10m A nine-room apartment inside a prewar building on Central Park West $20m A three-bedroom apartment measuring 4,000 sq ft with three bathrooms and terrace $30m A four-bedroom apartment in a new-build in Midtown measuring 6,000 sq ft with five bathrooms More homes at propertylistings.ft.com Photograph: Oleg Korshakov/Getty Images/Moment RM; HayesDavidson
Copyright The Financial Times Limited 2017. All rights reserved. You may share using our article tools. Please don't copy articles from FT.com and redistribute by email or post to the web.
https://www.ft.com/content/cb4f727e-8e3b-11e7-9580-c651950d3672
Page 5 of 5
9/8/17, 11:28 AM
North America Property
New York’s Midtown suffers property correction Manhattan’s high-end glut means developers have to be more realistic on pricing
New York’s Central Park © Oleg Korshakov/Getty Images/Moment RM
5 HOURS AGO by: Troy McMullen
This year, for the first time ever, the share of properties in Manhattan priced above $10m was equal to the share of properties priced below $500,000 — with both at roughly 6 per cent, according to a report by estate agency Stribling. Garrett Derderian, Stribling’s director of data and reporting, calls it “the most vivid indication of how the market has been inflated by luxury listings”. But estate agents trying to unload the growing overflow of pricey apartments call it a glut. “We’ve simply had too much building of luxury products in the city,” says Robert Dankner, https://www.ft.com/content/cb4f727e-8e3b-11e7-9580-c651950d3672
Page 1 of 5
New York’s Midtown suffers property correction
9/8/17, 11:28 AM
president of Prime Manhattan Residential. “There’s a penthouse glut and now we’re seeing a penthouse correction.” That correction is forcing developers to alter their building strategies as well as their prices. Gone are the days of bidding wars and what Jonathan Miller, chief executive at appraisal firm Miller Samuel, called “aspirational pricing”. In the second quarter of this year, the average high-end home in Manhattan sold at a 10.4 per cent discount, according to a report from Douglas Elliman and Miller Samuel. The companies define the high-end market as the top 10 per cent of all sales. In 2015, One57, a 90-storey tower in Midtown, set the record for the city’s priciest deal, when a penthouse sold for $100.5m. Today, six years after sales began, the building still has apartments on the market. Also in Midtown, a condominium on the 88th floor of 432 Park Avenue sold at the end of last year for $60.9m, a 20 per cent markdown from what developers initially sought. Developers “are becoming more realistic with pricing”, says Charlie Attias, an estate agent with Corcoran Real Estate who handles resales at One57. “They’re realising that with so many new units coming online they need to price properties more in line with market realities.”
https://www.ft.com/content/cb4f727e-8e3b-11e7-9580-c651950d3672
Page 2 of 5
New York’s Midtown suffers property correction
9/8/17, 11:28 AM
Condos in the 53W53 tower will start at $3.26m © HayesDavidson
In 2017’s second quarter, condo inventory in the borough stood at around 5,900 — up 35 per cent year on year, according to Halstead Property. And even more high-priced apartments are in the pipeline. By the time it is completed next year, 53W53, a condo tower under construction in Midtown, will rise 1,050ft next door to the Museum of Modern Art. The slender skyscraper — designed by the French architect Jean Nouvel — includes prices that rank among the most expensive in the city, ranging from $3.26m for a one-bedroom apartment to $70m for a penthouse. Also in Midtown, The Bryant, designed by David Chipperfield, includes one to fourbedroom residences and penthouses priced from $2.5m to $16.3m. The property has sold half of its 57 apartments, according to developer HFZ Capital Group. But, for struggling agents, respite might be just around the corner. The new projects arrive just as a change appears to be coming to Manhattan’s property market: sales seem to be growing again. In the second quarter of this year, the number of closed sales in Manhattan rose 15.2 per cent year on year, according to Douglas Elliman data. At the same time, the median price rose 7.3 per cent, reaching a record $1.19m.
https://www.ft.com/content/cb4f727e-8e3b-11e7-9580-c651950d3672
Page 3 of 5
New York’s Midtown suffers property correction
9/8/17, 11:28 AM
The Bryant has one to four-bedroom residences priced from $2.5m to $16.3m
There was also notable sales activity at the top end of the market. CityRealty, the property company, examined sale prices in what it considers to be the top 100 condo buildings in Manhattan. Over the year to June, they recorded an average price of $14.1m, with one unit at 432 Park Avenue selling for $65.7m. Agents, however, are unlikely to be heralding the return of the super-prime market just yet. Gabby Warshawer, research director at CityRealty, says that while the average price per square foot in the top 100 condos rose 9 per cent to $2,788, the number of units sold in these buildings actually fell by 3 per cent. “While it’s a very slight dip, it points to [the fact that] fewer buyers are actually closing on apartments in buildings covered in the index,” she says. “Fewer buyers were willing to sign on the dotted line.”
Buying guide • The median price for a Manhattan apartment reached an all-time high of $1.2m in the second quarter of this year, according to Douglas Elliman and Miller Samuel Appraisers • Just over 2,600 condos are due to come on the Manhattan market this year compared with https://www.ft.com/content/cb4f727e-8e3b-11e7-9580-c651950d3672
Page 4 of 5
New York’s Midtown suffers property correction
9/8/17, 11:28 AM
2,457 in 2016, according to a report by Halstead, the real estate company • Property commission in Manhattan is typically 6 per cent of the sale price
What you can buy for . . . $10m A nine-room apartment inside a prewar building on Central Park West $20m A three-bedroom apartment measuring 4,000 sq ft with three bathrooms and terrace $30m A four-bedroom apartment in a new-build in Midtown measuring 6,000 sq ft with five bathrooms More homes at propertylistings.ft.com Photograph: Oleg Korshakov/Getty Images/Moment RM; HayesDavidson
Copyright The Financial Times Limited 2017. All rights reserved. You may share using our article tools. Please don't copy articles from FT.com and redistribute by email or post to the web.
https://www.ft.com/content/cb4f727e-8e3b-11e7-9580-c651950d3672
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