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Condo glut is to blame for NYC’s weakened luxury market: report
The number of transactions over $5 million have plunged by almost a third in the first half of 2018
The oversupply of high-end condos in Manhattan, Brooklyn and Queens is pulling the luxury market down.
A report from Stribling & Associates for the first half of 2018 noted that the high-end condo market logged a nearly 40 percent decrease in transactions, according to Mansion Global.
“This was the first time in the past six years the condo market saw a reduction in sales,” Stribling’s Garrett Derderian wrote in the report. The brokerage’s data covers transactions in Manhattan, Brooklyn and Queens.
Derderian holds plunging condo sales responsible for the wider decline in NYC’s luxury market transactions. The report found the number of sales valued at $5 million or more fell 31 percent in the first six months of the year, according to the brokerage’s numbers.
In Manhattan alone, the inventory of condos is slated to hit a recent peak with close to 8,000 units expected to come online in 2019, as The Real Deal reported. Appraisal firm Miller Samuel predicts it would take about 4.5 years to sell the units–a far cry from the usual 2-year horizon.
Similarly, TRD logged condo development in Brooklyn and Queens ticking up through June 2018 compared to 2017 while demand in both boroughs dialed down. [Mansion Global]—Erin Hudson