Manhattan’s Luxury Real Estate Problem
As the year progresses, we’ve seen coverage of high-profile individuals like Jeff Bezos, Annie Leibovitz, and David Duchovny selling their opulent Manhattan homes. However, these transactions only tell a part of the larger story of Manhattan real estate, which also includes luxury apartments that no one is buying.
The Issue of Unsold Luxury Apartments
According to a recent article by Kim Velsey at Curbed, an analysis of the apartments on Billionaires’ Row reveals that 23 percent of sponsor units remain unsold. This figure may even be higher. In a city where many residents are clamoring for more affordable housing options, it’s an ironic twist that the one type of residence that seems to be widely available comes with an eight- or nine-figure price tag.
Opportunities for Bargain Hunters
If you’re in the market for a trophy apartment, there are relative bargains to be had. Velsey cites data showing that units at Central Park Tower are selling for, on average, a 25% discount. In Hudson Yards, that figure is even higher – closer to 40%.
The Importance of Location in Luxury Real Estate
The case of Hudson Yards highlights one of the issues facing the highest of high-end sectors of the real estate market right now: location matters for good and for ill. Given that the history of Hudson Yards hasn’t turned out as planned, it’s not surprising to see luxury apartments there going unsold. This could create a conundrum now and in the future for the companies that built those residences and were counting on higher sales therein.
Stay Informed on Luxury Real Estate Insights
For more information on the luxury real estate market in Manhattan and beyond, visit Jessica Fulk’s website and explore her extensive knowledge and expertise in the field.
Orginal article: Link To Article – provided by Kansas City Realtors
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