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Manhattan’s Ultra-Luxury Condos Cut Prices 20%

Billionaire’s Row, overlooking Central Park in Manhattan, has commanded some of the highest condo prices on the planet, including one unit that was listed for $250M.

But even the most exclusive zip code in the world isn’t immune to market fluctuations. That’s right, the most-expensive condo prices are coming down in the place where an apartment can cost more than a building in other parts of town.

The $250M trophy at Extell Development’s Central Park Tower has been marked down to $195M. Okay, we’re not going to call it a bargain—the duplex in the same building that’s going for $149.5M, that’s a bargain.

The reductions on both of these units, prices that came down 22% and 15% from their previous levels, are tangible proof that unrealistic pricing will not produce a sale no matter how many greenbacks are stuffed into a targeted buyer’s wallet.

According to a report in Bloomberg, some of the top-priced luxury units in the city are having trouble finding buyers, a phenomenon that isn’t limited to NYC.

Jonathan Miller, president of appraiser Miller Samuel, has tracked only 13 home sales that closed for $50M or more in the US this year, well below the record 49 sales at that benchmark or higher in 2021, the report said.

Thus far, only three of these high-end sales have been in Manhattan, compared to 12 deals of $50M or more in 2022. According to Miller, at this adjustment represents a return to pre-pandemic levels.

“I would look at 2023 as normalizing rather than an outlier of the last three years. That applies to this market and also to housing for mere mortals,” Miller told Bloomberg

An 8000 SF unit at Macklowe Properties’ 432 Park Avenue which once listed for $135M traded in August for $70M, the Wall Street Journal reported. The building’s penthouse, which listed for resale two years ago at $169M, recently was reduced to about $130M.

(In case you’re wondering, the current record is $238M, which billionaire Ken Griffin reportedly forked over for a penthouse at 220 Central Park South.)

“Middle-class” condos at the supertalls on Billionaire’s Row—the units priced below $50M—actually are doing quite well. An average of 3.7 apartments in that price range have gone into contract each month so far this year, the most since 2019, according to Marketproof.

Central Park Tower has sold about 55% of its condos, Marketproof reports. The penthouse currently listed for $195M spans 17K SF spread over the top three floors.
Reprinted with permission from the Tue, 19 Sep 2023 05:09:59 EDT online edition of GlobeSt © 2023 ALM Media Properties, LLC. All rights reserved. Further duplication without permission is prohibited, contact 877-256-2472 or reprints@alm.com.