A new report suggests that the projected overflow of Manhattan luxury product that is coming to market in 2015 has been grossly overestimated. Of 6,500 new units that marketing firms have predicted will go on sale in 2015, Halstead Property says about 3,000 are already spoken for.
“When you account for all of the apartments that are already in contract, you end up with almost half the projected number,” Stephen Kliegerman, president of Halstead Property Development Marketing, said.
Kliegerman expects that the limited supply will send condo prices through the roof, Crain’s reported. The report estimates that more than half of new condo listings hitting the market are priced at an average of $2,757 per square foot, nearly 25% over the average $2,215-per-square-foot sale price for newly developed condo units in 2014. The upshot? For the first time ever, half of new condo inventory in Manhattan will be priced at $5 million or higher, Kliegerman says.