Sales at Trump-branded condos continue to fall behind the rest of Manhattan
In November, 6sqft shared data that showed sales at Trump Tower were still in a post-2016 slump, but year-end figures show that the decline is a larger trend across Trump-branded buildings in NYC. According to CityRealty’s annual Manhattan Year-End Report, “In the third full year of Donald Trump’s presidency, the average sales price for the 11 Trump-branded condos in Manhattan once again fell below the Manhattan condo average.”
Charts by CityRealty
Overall, the 2019 real estate market in NYC remained relatively similar to the previous year, with 10,400 residential sales (condos and co-ops) totalling $21.2 billion. Likewise, it was ultra-high-end sales, those at or above $10 million, that really buoyed the market; 221 such sales amounted to $4.6 billion. And though Trump’s condo buildings used to be considered “ultra-high-end” they’ve seen a consistent decline since the election in 2016. According to CityRealty, “The average price paid for a Trump condo fell by 2% to $2.92M, just below Manhattan’s $3.07M average. The average price per square foot in Trump condos increased by 2% to $1,720/ ft2 in 2019, just below the Manhattan condo average of $1,860/ ft2.”
Between 2007 and 2016, sales at Trump condos averaged significantly higher than Manhattan at large. But at the end of 2017, sales fell below the Manhattan average for the first time ever. Painting a more grim picture is the fact that between 2007 and 2017, the average price per square foot at Trump properties only rose 15 percent, while the rest of Manhattan rose 51 percent, figures that remove the Trump buildings from the “luxury” market.
Charts by CityRealty
One change we saw this past year is which Trump building came out as the biggest loser. In more recent years, the title has gone to the Trump International Hotel & Tower on Columbus Circle. For example, in 2018, the average price per square foot here was $3,000, compared to the $6,758 average at the Robert A.M. Stern-designed 15 Central Park West just one block away. In August, of the 20 apartments for sale, more than half had their prices reduced. And just this past September, the board of Trump International debated removing the large Trump signage on the building (They ultimately voted to keep it). But it’s Trump Parc on Central Park South that lost big in 2019, with a 20 percent drop in average price per square foot from 2018 ($1,454 compared to $1,809). Part of the reason for this could be Trump Parc’s proximity to Billionaires’ Row, where uber-luxury buildings have seen increased desirability. Trump Palace at 200 East 69th Street was close behind at 19 percent, as was Trump Park Avenue at 17 percent.
So what’s to come for Trump’s buildings in 2020? Data tells us that these 11 condos will continue to steadily lag behind the rest of Manhattan, but with an election coming up, real estate experts predict rising uncertainty in general, and this could very well hit Trump condos even harder.
Find the full CityRealty 2019 Manhattan Year-End Report here.
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