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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]
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