The virus pandemic and social unrest have already sparked an exodus from major cities and now, the ability to work remotely has likely contributed to the decline in luxury condo prices.
Wealthy elites, those who still have the economic mobility to flee cities, considering mortgage lending standards are quickly tightening, are heading to rural communities and suburbs, which is being reflected in dwindling demand for some luxury condos in Manhattan.
Forbes reports unsold units at The Getty Residences, at 503 West 24th Street, have seen sharp price discounts, of more than 40%, as demand collapses.
The units range from a 3,312-square-foot, three-bedroom, three 1/2-bathroom that had its price cut about 42% to $9.4 million to a 3,816-square-foot, three-bedroom, three 1/2-bathroom apartments with a balcony dropping 43% to $13.8 million. – Forbes
The building’s developer said price reductions reflect the current bearish fundamentals of the real estate market:
“We recognize that the New York City luxury real estate market is currently in a much different place than it was even a year ago,” Ran Korolik, vice president and partner of developer Victor Group, told Forbes. “Therefore, we are taking a proactive approach by significantly reducing the prices on the remaining homes at The Getty Residences to reflect today’s environment.”
Over at the “coveted” One57 building, one of the flagships of billionaire’s row, a luxury condo just sold for $28 million about six years after it was initially purchased for $47.4 million.
It marks a 41% discount for the condo in the span of about a half-decade. The plunge in prices would be the most significant discount to date at the building.
Even before the virus pandemic, half of all Manhattan’s new luxury condos sit unsold. Imagine what that figure is today…