Manhattan’s Condo Boom Is Winding Down

ONE57
Courtesy of Extell Development
One57, Home Of New York's Most Expensive Condos — And Billionaire's Row's First Condo Foreclosure

Just as waves of new uber-luxury condo supply flood the NYC market, demand for these high-end properties is drying up amid global economic turbulence—foreshadowing a potential luxury bear market.

Case in point, the 1,004-foot condo tower One57 is seeing sales slow, with 20 of its original 94 condos unsold, as builder Extell Development reduced its projected sellout value of the tower to $2.56B, a $162M markdown from its 2013 projections, according to securities documents filed on the Tel Aviv Stock Exchange.

Other high-end markets are feeling the same slowdown. Miami’s ultra-luxury sector has seen developers canceling projects and slashing prices as wealthy foreigners pull back—alongside London, which has seen falling prices in luxury property, the high-end art sector and even the classic car market, the Wall Street Journal reports.

Not everyone is worried about the apparent slowdown, though, as NYC’s newest luxury condo developer, Michael Shvo, says he has $4.3B worth of high-end apartments under development and expects to have nearly 400 units hit the market by August. Shvo's confident there is actually an “undersupply of great product in great locations.” [WSJ]

Continue reading this story with a free account

Log in or register
Sign up for more articles like this
Subscribe to Bisnow's National Newsletters
Related Stories

DFW Multifamily Distress Creates Opening For Investors As Development Slows

HPP, Blackstone Nab Extension On $1.1B Loan Tied To 2.2M SF Hollywood Portfolio

Security Tech Firm Plans Loudoun HQ Move: The D.C. Deal Sheet

BMO Executive Named New CEO At CREFC

Traders Bet On A Rate Hike From The Fed After Inflation Report Climbs Higher

Why The Next Generation Of Data Centers Will Require More Battery Options

Prolific South Florida Developer Nick Rojo Dies At 44

25 Years After 9/11, Lower Manhattan Is Finally Firing On All Cylinders

Davis Looks To Sell 16-Building Beacon Hill, Back Bay Portfolio

Tishman Speyer Seeks $92M Tax Break For Next Hudson Yards Office Tower

Former CBRE Exec Suing Brokerage Giant Over Age Discrimination, Whistleblower Complaint

Limekiln Sells Stake In Multifamily Lender MF1 To Berkshire Residential