Manhattan condo developers are turning up the dial on pricing up to two times a month as buyers clamor for homes in a tight-inventory market. Sales in the borough in 2012 were the second-highest in a decade, while the number of homes up for grabs were the lowest in at least 12 years in the fourth quarter, Bloomberg reported.
Twenty-one new condo buildings with 1,188 units total raised their asking prices last year, according to the office of New York State Attorney General Eric Schneiderman. In 2011, Manhattan developers filed plans for selling 2,267 new condo units, a figure larger than the previous two years combined. In 2012, there were plans submitted for 1,695 units.
Some projects plumping up their price tags include Harry Macklowe’s 432 Park Avenue, where prices have increased 1.3 percent since the attorney general first OKed the sales plan in July. Amenities at the future 1,397-foot building will include temperature-controlled private wine cellars that stay below 57 degrees Fahrenheit and a catered private dining room, in which residents must buy at least $1,200 in meals every year.
Walker Tower in Chelsea by JDS Development has boosted the value of its 50 apartments by 5.8 percent since May for a total of $533.2 million, according to documents filed with the attorney general. The full-floor five-bedroom penthouse alone is asking $55 million, compared to $50 million in May. In the same neighborhood, Citizen Condos at 124 West 23rd Street has upped prices 62 percent since sales began in April 2012.
“We’re going to see a lot more people stepping up to the plate and buying off floor plans,” Shaun Osher, chief executive officer of CORE Group, told Bloomberg. CORE is advising on the pricing at Walker Tower, and Osher said that he’s witnessing a return in boom-era buying practices. “This is really a sign of what’s happening: Incredible demand plus low inventory.”