The NYC luxury condominium market is renowned for its high-rises. With over 45 luxury high-rise condos sprinkled throughout the city, blue-boarded scenes of constructions hoping to scrape the sky is nothing unusual. Indeed, what is unusual is when Manhattan mega-condos aren’t rising. Because the NYC condominium market rides in waves of booms and falls, glass towers shoot up somewhat cyclically. In 2011, Manhattan condominium developers have decided to throw their dice in on residential boutiques and conversions.
According to theReal Deal’s published statistics of the New York State General Attorney’s office (whose stamp approves condo constructions and conversions) only 466 new condo units have risen in Manhattan in 2011. In 2006, there were 10,660 new NYC apartments for sale. But what accounts for the fewer luxury apartments going up is the shrinking pipeline of submissions to the AG, and developers’ shift to the smaller, scaled-back amenity boutiques and conversions that have a shorter turnaround time and smaller price tags. As New York City condominium developers are given tricky budgets, less risky downsized Manhattan residential buildings with immediate ribbon-cutting ceremonies are more likely to get financed. Current federal loaning hurdles often require condo buildings to have closed substantial presales before backing a homeowner’s mortgage--smaller boutiques in Manhattan districts like Tribeca and Chelsea with fewer apartments for sale can jump these hurdles easily.