The Real Deal New York

From the archives: Quantifying the buyer pool for NYC’s ultra-luxury product

July 12, 2016 01:15PM

One57 at 157 West 57th Street, rendering of 518 West 18th Street on the High Line, rendering of 22 Central Park South and 432 Park Avenue

From clockwise: One57 at 157 West 57th Street, rendering of 518 West 18th Street on the High Line, rendering of 22 Central Park South and 432 Park Avenue

The New York Times on Monday declared an end to the “ultraluxury real estate frenzy,” citing a serious disconnect between supply and demand. The newspaper pointed to an excess of high-priced inventory flooding the market, even as fewer captains of the universe seem willing to make splashy purchases. The Gray Lady followed in the footsteps of the Wall Street Journal, which reached a similar conclusion in May.

More than a year ago, however, well before the talk of doom and gloom became commonplace, The Real Deal attempted to quantify the demand for top-shelf product. We found that developers had perhaps made too much of a bet on the very top of the market — a bet that is now coming back to give them serious headaches.

As developers look to recalibrate, it’s worth revisiting that story here: “How much demand actually exists for uber-luxury condos?

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