Five Luxury Towers Will Account for One-Third of New Development Sales over the Next Five Years
It’s projected that over the next five years, new development sales in Manhattan condos will total $27.6-$33.6+ billion, but this sky-high figure is heavily skewed by prices in just five buildings. These luxury towers will account for one-third of the total projection. Three of the buildings — 432 Park, 220 Central Park South, and 550 Madison Avenue (the former Sony Building) — are located on billionaires’ row and are expected to bring in a whopping $8 billion. The Greenwich Lane and 10 Madison Square West will also likely bring in close to $1.5 billion each. Along with this boost from the upper end of the market comes a trend where fewer units are selling, but prices are shooting up.
CityRealty arrived at their conclusions after analyzing 4,881 new development units from active and in-contract listings and offering plans. According to the report, “Sales in new developments totaled $4.1 billion in 2014, up 50 percent from 2013. The average price of these new development units is expected to reach a record of $5.9 million per unit in 2015 [which is more than double the projected citywide average of $2.7 million, notes the Daily News]. At the same time, far fewer units are being built than during the last development boom in the mid-2000s, therefore the number of closed sales is expected to increase more modestly than their prices.”
Midtown East will likely be the new “highest grossing section of Manhattan in new apartment sales,” as those in the neighborhood are expected to total more than $9 billion. Last year, Midtown West held the title with $1.2 billion in recorded closings, $1 billion of which was attributed solely to One57. As you probably recall, the building had a $100,471,452.77 sale earlier this year, the most expensive condo purchase ever recorded Manhattan, as well as the second most expensive at $91.5 million. Following this trend, the Sony Building is expected to offer a $150 million penthouse, and 220 Central Park South’s penthouse may ask $175 million.
You can read CityRealty’s full report here >> (opens to pdf)
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