Rendering: The Seventh Art
2015 is the year of the condo in Manhattan, the New York Times has declared.
At least 6,500 new condominium units across more than 100 buildings below 96th Street are slated to land on the market this year — that’s more than twice the 2,500 units in 59 developments that opened for sale in 2014. This will be the highest inventory since 2007, when 8,052 new units were listed, according to a report by the Corcoran Sunshine Marketing Group.
The influx of fresh development comes after a five-year shortage of available new construction. Several hotly anticipated, splashy-luxury projects along the “Billionaire’s Row” of West 57th Street will launch in 2015, including JDS Development and Property Markets Group’s 111 West 57th Street, which will rise about 1,400 feet tall. Near MoMA, 53W53, designed by Jean Nouvel and developed by Hines, will rise approximately 1050 feet tall; 220 Central Park South, designed by Robert A.M. Stern and developed by Vornado Realty Trust, will top out at 950 feet.
Not all the premium action is happening on West 57th; Zeckendorf Development’s 520 Park Avenue in the Upper East Side is poised to shatter records when its triplex penthouse lists for $130 million this year.
But don’t let those dizzyingly high prices get you down; the most egregiously expensive condos — 500 “ultraluxury” units priced at $5,000 or more per square foot — make up less than 10 percent of new development coming to market in 2015, Kennedy Mack of Corcoran Sunshine told the New York Times.
“There is a misperception that the market is swinging drastically toward the high end,” she said. “We’re seeing a relatively steady pricing mix from year to year, which is really supported by robust buyer demand at all levels.”
Of the 6,500 new condo units available for purchase in the next 12 months, 3,300 will be “middle luxury,” priced from $1,700 to $2,300 per square foot. That’s an increase from 1,100 units in this category last year; two-bedrooms in this price range sold for about $2.5 million in the third quarter, based on contracts signed, according to Corcoran Sunshine.
More than 800 “entry level” units, priced at less than $1,700 per square foot, will enter the market this year, up from 306 in 2014. One-bedrooms in this segment sold for an average of $1.19 million in the third quarter of 2014, based on contracts signed.