Despite a spectacular run of new constructions in Manhattan and Brooklyn, inventory is still tight. Crain’s reported that of the 850,000 condos and co-ops in Manhattan, 0.6 percent of them were on the market during 1Q 2015. According to Jonathan Miller of Miller Samuel, “Resale inventory is stagnating...And going forward, that is probably going to keep pressure on prices.”
This news is especially interesting since the ultra-luxe sector of American real estate is showing signs of an uptick in general. The Wall Street Journal reports that the number of real estate properties priced at $100 million or more has noticeably risen over the past year. According to the WSJ, Christie’s International Real Estate counted 10 listings that break the $100 million mark as of March 31; comparatively, only three homes in that tier were sold last year: a sprawling, 50 acre property in Connecticut, an 11.2 acre property in the Hamptons, and a penthouse in everyone’s favorite Billionaire’s Row tower, One57. By the same token, it’s also worth emphasizing that these 10 listings are just that. As Jonathan Miller notes, “A lot of the vanity listings that were above $100 million never sold. They either came off the market of the prices were cut in half and then they sold.”
Even then, the strength of Manhattan’s ultra-luxury market has been underscored several times over. According to an analysis conducted by CityRealty, new development sales over the next five years will likely total somewhere in the range of $27.6 billion and $33.6 billion – and that a full third of that can be credited to just five developments: 432 Park Avenue, 220 Cenral Park South, 550 Madison, Greenwich Lane, and 10 Madison Square West. The analysis was concluded with a sample of 4,881 new development residences, from both active listings and those in contract.