Posted on January 3, 2011 by Leonard Steinberg
Downtown closed out 2010 with a bang: The volume of $ 5million+ signed contracts and closings was somewhat astounding, further re-enforcing the theory that the highest end of real estate in Downtown Manhattan is literally booming.
Now we can officially say that the market has returned once more to a shortage of un-affordable housing. Inventory has dropped to below 2005 levels, but this time the shortage will be tougher as the supply chain for new, super-luxe product, especially Downtown, will be slowly delivered due to the virtual halt to new development and construction over the past 2 years.
We know of several superb projects that are now finding funding…..but they will only be deliverable in about 2 years. That’s a long wait. Another big question looms: will the high end buyer, spoiled by the last 2 years of ‘immediate delivery new development properties’ be in a position to commit to buying from floorplans again? There may be no option.
Uptown we hear of shortages too, so this is definitely a city-wide phenomenon. We hear of ambitious plans to develop ultra-luxe buildings with starting asking prices of $ 5,000+ per square foot (high yes, but still half-priced compared to London). But Downtown, with its growing demand for the ‘younger wealthy’, still has a very limited volume of A-grade buildings. It is predominantly the newer buildings that deliver what the luxury buyer has gotten accustomed to and demands.
All in all, 2010 ended on a strong note: Manhattan real estate has weathered the financial storms rather well. And the week between Christmas and New Year’s, traditionally a super-slow time, was rather busy…..a strong indicator that the first quarter of 2011 will be very active. Low interest rates combined with bonuses, combined with good pricing usually results in a strong market…..Now let’s hope we can find some good stuff to bring to the market.
Tags: $ 5 million plus, 200 11th Avenue, downtown manhattan, Downtown sales, inventory levels, Leonard Steinberg, New York 2010 residential real estate sales figures, un-affordable housing
How unusual, that luxury Manhattan real estate sales are taking a back-seat to luxury highrise Manhattan apartment rentals. Very interesting indicator for the first quarter. Waiting to see what happens in this market.