Market Update: Week of September 12 through 18
Activity in New York City’s new development condo market increased 54% last week, bouncing back from the annual Labor Day dip. Developers reported 60 contracts across the city: Manhattan had 23 contracts (+21%), Brooklyn had 30 (+100%) and Queens had 7 (+40%).
The luxury tier gained momentum with nine contracts reported above $4,000,000, up from two previously.
The most expensive was at 35 Hudson Yards, where a penthouse listed for $49,500,000 went into contract and closed for $35,003,752 – a 41% discount for a residence that played an important backdrop for HBO’s hit series Succession. And that wasn’t the only big ticket in the neighborhood for developer Related Companies. Next door, 15 Hudson Yards signed a $6,450,000 three-bedroom, and the Thomas Heatherwick-designed Lantern House along the High Line had contracts for units asking around $4,000,000 and $5,000,000.
In addition to Extell announcing the potentially record-breaking $250,000,000 penthouse at Central Park Tower, the week also brought a high-profile sales launch for ONE11, the luxury condominium at the Thompson Central Park hotel, formerly known as Le Parker Méridien hotel. According to the offering plan, prices for the 99 units range from around $1,250,000 to $14,500,000, a relative bargain for such proximity to Billionaire’s Row.
This new hotel-condo comes to market on the heels of wildly successful condo sales at Aman New York, where a $75,000,000 unit sold earlier in the year, and also at the Ritz-Carlton New York, NoMad where two-bedroom residential suites are going for over $7,000,000.This is the niche market to watch in Q3.
Demand for luxury was also seen in Brooklyn. One Clinton in Brooklyn Heights notched the week’s second most expensive transaction, selling its largest unit, a five-bedroom condo priced at $8,925,000. This is also one of the boro’s biggest sales in 2022, following the nearly $13,000,000 five-bedroom unit at Olympia Dumbo that went into contract over the winter.
“With five bedrooms and a separate den, and spectacular views west, south and east, this is an exceptional home providing townhouse-sized space all on one floor,” said Leslie Marshall of Corcoran Group, the team handling sales for One Clinton, adding that the project is now 90% sold.
Based on initial September sales, the new development market is positioned for a strong fall season, especially if luxury transactions continue to make headlines and if resale inventory remains low.