For the second quarter in a row, average condo sales prices in Manhattan are breaking records. The first three months of 2016 saw $4.59 billion in aggregate sales, breaking the previous record of $4.57 billion that was set last quarter, according to data from CityRealty. The average sales price topped out at $2.9 million, also significantly higher than last quarter’s $2.5 million. These figures aren’t surprising considering 24 percent of all condo sales during the beginning of this year were at or above $10 million, with new luxury developments like 432 Park Avenue, The Greenwich Lane, and 150 Charles Street accounting for the uptick.
What Manhattan will look like in 2018, via CityRealty
Most landowners, especially those who have been in the development business for a long time, aren’t easily persuaded to sell their holdings, but with sales reaching record sums, that’s all starting to change.
As Crain’s recounts, back in November Jerry Gottesman, who has a property empire worth over $3 billion, sold a parking lot he owned between 17th and 18th Streets near the High Line for $800 million. He bought the site in the early ’80s for $2.4 million. Influenced by the sale, other landowners are also looking to get in on the action; just last week three large residential development sites hit the market asking $1,000 or more per buildable square foot–a 50 percent increase in the price of Manhattan land from last year. And if the parcels fetch these sums, it will be the first time values per buildable square foot reach four figures. With these record sale sums, Manhattan condo builders would have to sell units at sky-high prices to make a profit. For example, a 1,000-square-foot apartment would need to sell for $3 million or more just to break even.
- An anonymous buyer snagged an 18th – and 19th-floor apartment at 15 Central Park West for $48 million. This purchase is the second most expensive sale in the building, falling “just” $40 million short of former Citigroup CEO Sany Weil’s penthouse buy.
- Most Manhattan apartments don’t come with an inch of green space, but the six listings highlighted in our report sure do! Guess which addresses have green escapes hidden from prying eyes…
- 116 condos sold for an average of $2.4 million; and 137 co-ops sold for an average of $1.2 million during the week of April 28th-May 4th. With summer just around the corner, it looks like buyers are clamoring to close.