Why the golden years of New York’s luxury market may be over
Why the golden years of New York’s luxury market may be over
Start spreading the news. They’re leaving today
It’s official. As reported in July, New York City’s luxury real estate market is flagging.
The number of contracts signed for New York homes with a minimum price of USD4 million stood at 1,102 this year, an 18 percent decline from 2015, according to a year-end report released this week by Olshan Realty.
“The numbers are higher than 2012, but below the golden years of new condo development (from) 2013-2015,” Donna Olshan, president of Olshan Realty, stated.
The contracts signed this year represented only USD8.938 billion in sales, compared with USD10.738 billion in the previous year.
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The city’s co-ops bore the brunt of disinterest from buyers: a 25 percent decrease in signed contracts that the Olshan report called “the steepest fall from grace.” Demand spiked instead for New York condominiums, which accounts for 76 percent of contracts signed.
This upheaval signals “a continuing market shift in the luxury market to new condos that offer freedom of ownership, new infrastructure, robust amenities, and some hip architecture,” Olshan explained.
But don’t count Gotham out just yet. Foreign capital is still flowing strongly into NYC properties selling for USD50 million and above, especially from China and South America, according to Philip White, president and CEO of Sotheby’s International Realty.
“New York City remains a save haven for investors and I think that will remain that way,” he said.
Read next: New York state of mind: real estate opportunities in the Big Apple
Source: Property Report