My Takeaway: The NYC brokerage community continues to see strong demand from domestic high-net-worth individuals, as well as from foreign buyers, for Manhattan luxury condos. Given the competition among new projects, buyers in both the middle luxury price range and at the top end of the market can expect to see a higher level of design and quality in this next wave of new condo product.
For those who thought the residential building boom of the last few years moved at a dizzying pace, things are about to get even quicker. As The New York Times reported earlier this year, approximately 6,500 units—across more than 100 buildings—are expected to open for sales in Manhattan in 2015. That’s up from just 2,500 units in 59 buildings last year. Ground-up construction will comprise about 60% of all new development projects. Approximately half of the new units (an estimated 3,300) will be in the so-called “middle luxury” segment—which has been neglected so far, but has proven to be the market’s “sweet spot,” representing the majority of the market demand. Two-bedrooms in this price range were selling for about $2.5 million in the third quarter of 2014, based on contracts signed. Prices at these new developments will range between $1,700 and $2,300 per square foot. Conversely, ultra-luxury units, priced at $5,000 per square foot and above, represent less than 10% of the new development inventory coming to market in 2015.