A bargain for Manhattan homebuyers
But there are also differences. Unlike the last collapse in 2008, lenders don’t seem to be stopping construction. Instead, they take a longer-term view, extending lifelines after lifelines to keep condos afloat, although it is the major builders who benefit the most.
Price-wise, the Manhattan condo with the biggest gap between expectation and reality may be 111 Murray Street, a 157-unit project at TriBeCa that has spent six years trying to attract buyers. . The average discount between the top prize and the final prize is 38 percent there, based on an analysis of winter shutdowns by Garrett Derderian, director of the Serhant brokerage.
The all-must-go strategy can work. As of last month, 150 of the 157 apartments were advertised, said Winston C. Fisher, a partner of Fisher Brothers, who co-developed the condo with the Witkoff and New Valley companies. In March, according to StreetEasy, a four-bedroom on the 22nd floor was the cheapest unit in the condo, at $ 6.25 million. (Last year, the average Manhattan apartment cost around $ 1.9 million.)
“We are proud of our sales to date,” Fisher said in a statement, “and our ability to operate in a changing market.”
Two projects from Related Companies, one of New York’s biggest owners, are also in deals mode.
At 35 Hudson Yards, a tower with hotel rooms, offices and 143 residential condos that has been in existence for two years, a 23% discount was in effect, according to data from Mr Derderian. Nearby, 15 Hudson Yards, a 284-unit condo marketed since 2016, has reduced prices by 17%. “The prices reflect market conditions, and due to current prices there is a very strong selling momentum,” said a spokesperson for Related.
According to brokers, a singular challenge in today’s market is the amount of older homes lying around. Extell Development Company’s 157 West 57th Street condo, for example, still hasn’t sold all of its sponsor units despite being marketed for a decade. This winter, the blue-hued skyscraper units, which contributed to the rise of the Billionaires’ Row name, lost 24%, Mr Derderian said.