The amount of cash that buyers will spend on super luxury apartments in Manhattan is set to reach a new record despite growing evidence demand has been weakening at the top of the market.
Property website CityRealty is predicting that sales of Manhattan apartments over $10 million will hit a record $5.2 billion through the end of 2016.
If this materializes, it will represent a significant jump from the $3.5 billion spent last year on these super high-end apartments, according to CityRealty’s report analyzing the condo and co-op market in Manhattan (excluding Harlem), which is based on closed sales data.
At the same time, the number of sales of apartments of at least $10 million is also projected to reach 300 through the end of 2016, up from the 189 last year. This will be the highest figure ever recorded.
In the overall market, CityRealty is predicting that total sales volume will reach $25.8 billion for the full calendar year of 2016. This will be the first time residential sales will top $25 billion. Total sales volume in 2015 was $22.8 billion.
And in 2016, the average sales price for co-ops and condos has climbed to $2.2 million, topping the $1.9 million record set in 2015. The median sales price of $1.2 million, also a record, represented a 9% increase from last year, when the median was $1.1 million.
CityRealty research director Gabby Warshawer told Mansion Global that these positive numbers could be attributed largely to closings of sales that were originally agreed on two to three years ago at some of the city’s most expensive buildings, such as 432 Park Avenue, the tallest residential building in the western hemisphere.
For the first 11 months of 2016, sales at 432 Park far outpaced all other buildings, totaling $1.5 billion, with an average price-per-square-foot of $5,372.
What’s more, over half of the 25 top sales across the city in 2016 were at 432 Park. The highest on record was a penthouse, which sold for $87.66 million, the third most expensive condo ever sold in New York City.
But the trend is not expected to continue into 2017, according to CityRealty, as fewer closings in super high-end buildings are expected.
“As for next year, we forecast that average prices will remain the same, rather than rising or falling, because there aren’t a number of big, very expensive new condos that will have first sales recorded in 2017,” Ms. Warshawer said.
BY KATHRYN HOPKINS