Prestige condo developments defy NYC market downturn

Market Update: November 7 – November 13, 2022

New York City real estate agents had fewer days to transact, what with Election Day and Veterans Day falling in the same week, and the sales data shows it. Only 31 new development condo deals were reported, a 40% drop.

A quarter were asking more than $4 million and that pushed the average asking price to nearly $3 million, up 20% from the week before. Luxury condo sales have held strong over the past month with a heavy emphasis on Manhattan.

Billionaire’s Row supertalls continue to sell. 111 West 57th Street (aka Steinway Tower) found a buyer for a residence asking $16.5M. It was the week’s most expensive contract.

Blue chip developments on the Upper East Side have also been defying the broader market trends. Zeckendorf Development’s 1289 Lexington is the new kid on the block. The project, where the smallest unit is a two-bedroom, had three sales last week and is already nearing 20% sold since launching in June.

“As financial markets go up and down, many well-heeled buyers are looking for less volatile investments and see real value in the apartments at 1289 Lexington. The quality of our floorplans and finishes is simply not found in any other comparably priced new development,” Artie Zeckendorf, Partner of Zeckendorf Development.

But the neighborhood to watch right now is NoMad, which has been completely rebranded as a luxury lifestyle destination. Rose Hill , Madison House and The Ritz-Carlton Residences New York, NoMad have been achieving high prices at a high velocity. These are some of the top-selling projects in 2022 and they’re all concentrated in one area.

“NoMad has become one of the most sought-after residential neighborhoods in Manhattan, and Rose Hill is the most coveted building within the neighborhood,” said Shaun Osher, Founder and CEO, CORE Real Estate, which is repping Rose Hill.

Located a 30 East 29th street, Rockefeller Group’s art deco-inspired condo has been averaging $2,433 per square foot – 45% higher than the neighborhood average of $1,683. Top sales in the building include a three-bedroom that recently closed for over $6.2 million at $3,722 per square foot and a studio that sold for over $2,600 per square foot.

“With the building over 70% sold, we are seeing strong demand for the remaining few opportunities to live in this timeless tower,” Osher said.