Photo: Bex Walton/Flickr
Manhattan’s priciest pads have been experiencing a slowdown in sales in recent months that have had some real estate analysts concerned. But according to the newly released 2017 Luxury Residential Report by New York City brokerage Stribling, sales in Manhattan’s luxury market were up last year, and new developments in particular led the way.
The comprehensive report analyzed trends in the Manhattan luxury condo and co-op submarket from 2014 through March 6th of this year. Properties priced at $5 million and up make up the luxury submarket.
Last year, there were 1,013 condo and co-op transactions in the luxury submarket. This was up nearly 22 percent from the previous year, and just over 40 percent from 2014.
At 56.5 percent, new developments accounted for more than half of all sales and also accounted for 62 percent of the total sales volume for the first time in 2016. The total number of new development luxury sales rose to 572 in 2016, up 53.8 percent from the previous year, and up a staggering 142 percent from 2014.
New developments priced between $10 million and $10.9 million skyrocketed 122.4 percent year-over-year — the largest increase recorded in any price bracket.
Meanwhile, the number of co-op sales dropped 20 percent year-over-year to 148 in 2016 — the third straight year of declines. The biggest decline in the condo market occurred in the second half of 2016 when sales dropped nearly 30 percent from the previous year during the same period.
New development condo sales were up an impressive 53.8 percent year-over-year in 2016, and nearly 58 percent from 2014. But condo resales remained relatively flat last year at 293 closings, only up 6.5 percent from 2015 and up 5 percent from 2014.
So far in 2017, 152 total contracts have been signed for Manhattan luxury apartments, an increase of nearly 29 percent over the same period last year. Condo contracts were up nearly 61 percent over last year, while there was a 9.4 percent decrease in co-op contract signings.
The overall increase in sales could be an early sign that the borough’s sluggish luxury market could be on the mend in 2017.
“We’re definitely on an up-trend — we’ll see how much strength there is in it,” Kirk Henckles, Vice Chairman and Director of Private Brokerage at Stribling, told The Real Deal.
Click here to read the entire report.