Report: Declining New Condo Sales Could Mean a Bargain for Buyers Developers Are Cutting Prices and Offering Discounts to Lure Apartment Hunters

(istock.com)

If you're looking to buy a new condo in New York City, perhaps now is the time to do so.

According to a Wall Street Journal report published yesterday, sales for new condominiums fell during third quarter 2018—a drop of 30 percent compared to the same quarter in the previous three years--based on an analysis of sales records.

Developers are now looking to make deals to entice buyers, such as cutting asking prices and offering discounts, with new condo sales in a holding pattern this year.

For instance, several listings for the 100 Barclay condo development in lower Manhattan were purchased slightly below their asking prices, and that the discounts have become more steeper in the past year, based on information from StreetEasy.

Some developers, according to the Journal, are willing to pick up the closing costs, including the city and state transfer taxes that new buyers normally pay to finalize a deal.

Pamela Liebman, President of the Corcoran Group, told the Journal about the recent trend: “Not all buyers appreciate the level of discount they can get today and are hoping prices will drop further. We won’t know whether or not they will be proved right or not [for a while].”

Meanwhile, 12 New York City luxury condos entered into contract for the week of October 1-7, with the average asking price of $7,487,083, according to the latest market report from Olshan Realty Inc.

Based on the new survey, the biggest signed condo contract last week was for an apartment on 33 East 74th Street with an asking price of $15,900,000. The 3,851-square-foot unit contains three bedrooms and three-and-a-half baths, “with airy 10' stepped ceilings, solid oak flooring, oversized windows, custom moldings and millwork, beautiful fixtures and finishes by acclaimed interior design firm, Alexandra Champalimaud, and Beyer Blinder Bell Architects." The building amenities include a health club and an attended lobby.

The second largest signed contract was for a five-bedroom/four-and-a-half-bath apartment located at the Belnord on 225 West 86th Street, with an asking price of $12,775,000. The 3,963-square-foot condo includes an eat-in kitchen, Calacatta Gold marble countertops, a master suite, heated floors, and a deep soaking tub, according to Olshan.

A triplex penthouse at 15 Leonard Street came in third for the highest condo sales transaction in the city with an asking price of $12,750,000. Featuring five bedrooms and five full bathrooms, this 4,574-square-foot penthouse has on the 7th and 8th floors collectively a master suite with a private terrace; a skylight; direct access to the elevator; a laundry room; a powder room; and a 48” Subzero two-door fridge. The 9th floor offers views of the One World Trade Center and has a built-in bar and a kitchenette with a sink. A virtual doorman and a private parking space are part of the amenities, said Olshan in its report.

David Chiu is an associate editor at The Cooperator. 

Related Articles

Long Island City Perseveres Despite Amazon Fall-Out

Residential Sales Still Rising After Retailing Giant Bails Out

Crown Heights Welcomes New Luxury Condo Project

111 Montgomery Is Ready for Business

Queens' Tallest Condo Building Racks Up $223M in Sales So Far

Long Island City's Skyline Tower Launched Sales in May

Long Island City Condo Combines Local Architecture and Art

Galerie Incorporates Multiple Building Styles - and an Art Gallery

Report: Trump Tower Is Losing Its Luster

Condo Sales There Have Come With a Loss Since 2016

Report: Listing for $85M Penthouse That Comes With a Trip to Space Is Pulled

And It's Not Because Someone Bought It