Why New York City Has Over 75 Listings Asking $35M and Up
Thursday, April 30, 2015, by
Zoe Rosenberg
[The Low Mansion on Pierrepont Place in Brooklyn Heights
is asking a Brooklyn record-shattering $40 million.]
No, no one's tripping. There
has been a ginormous increase in apartments throughout New York City asking
upwards of the mid eight-digits.
According to the Wall Street Journal, $40 million is
the new gold standard for luxury dwellings in New York City and elsewhere following 2008s financial meltdown. A quick StreetEasy search reinforces this: there are
76 listings in the city priced at or over $35 million, and 10 in-contract listings at the same price point. Let's all take a moment to reflect on that.
Okay, moving on. These dwellings aren't confined to the
"massive erections" of wealth on 57th Street, but the listings in towers like
One57, 432 Park Avenue, and the
newly-launched 520 Park Avenuecertainly
do have an effect on the ask of other properties throughout the city. The
Daily News says that the
"headline-grabbing towers" are skewing the asks of new condo developments way, way up: the average price of a new condo has
jumped 50-percent in the last two years alone. That means the average ask of a new condo in Manhattan is expected to be $5.9 million this year, with not new condos going for an average of $2.7 million.
Why super expensive condos are multiplying isn't rocket science at this point, but
Curbed contributor Jonathan Miller
explained to the Journal that factors like the
proliferation of global wealth, increased demand from foreign and domestic buyers looking to
park their wealthand developers' response to build more pricey properties for them to do so, as well as the ol'
copycat effect when big-money listings prompt people to put their properties on the market
for similarly inflated asks all contribute to the boom in properties asking $40 million or more.
Over the next five years,
6sqft reports that
new development sales will total $27.6 to $33.6 billion, with a whole third of that sum concentrated in just five projects: the humongous
Greenwich Lane, 432 Park Avenue,
550 Madison Avenue,
10 Madison Square West, and 220 Central Park South. But the effect of that is seen in other properties, too. The former Brooklyn Heights mayor's mansion that
recently set a borough record with its $40 million ask? In 1991, it was purchased for a mere $2.3 million.
