How Haircuts Happen: Tribeca Luxury Condo Tribeca Summit As Object Lesson In Condominium Economics

Tribeca Summit in Manhattan We've previously written about Tribeca Summit, one of the more promising luxury condo listings in Tribeca, here at the New Construction Manhattan blog. We've written about Tribeca Summit both because it's one of the more striking pre-war condominium listings in Tribeca and because it is an exceptionally good source of blog copy -- from bitter-ish management disputes to price cuts, Tribeca Summit is an interesting building that has the misfortune, as the Yiddish curse goes, to live in interesting times. But while condos continue to sell at Tribeca Summit, its continued willingness/need to reduce prices on its apartments for sale has made it a frequent subject of analysis. Add it all up, as Sandy Mattingly does at his blog Realtown, and you've got a portrait of a very appealing Manhattan condominium listing with some very appealingly negotiable prices on its condos for sale.The flexible pricing reflects nothing more than the natural economic imperative of a condominium developer who has found himself hanging on to more empty inventory for much longer than anticipated. But in Mattingly's case study, a pattern does reveal itself. "Notwithstanding that this developer has been at this far longer than originally planned, it is interesting that the original prices were much closer to the clearing prices than the last asking prices," Mattingly writes. "The typical pattern was that the developer raised prices a couple of times before they were ready to close any units, then held (high) before formally taking a unit off the market (were they rented??), then bringing them back in 2010 at the last (high) price. From which they were very willing to negotiate." This ebb and flow (and listing/de-listing/negotiation) is the way it works, folks. And it's why, even as the Manhattan condominium market rapidly returns to health, there are still some great deals to be had on Manhattan condos for sale.

NYC Daily Real Estate Blog