Prices plummet for luxury units

Sellers of luxury units are cutting prices by an average of 20 to 25 percent, said Kirk Henckels, executive vice president of Stribling & Associates. Cuts are particularly steep on the Upper East Side, where, for example, Brooke Astor’s duplex is on the market for $29 million. Three years ago, it would have cost more than $40 million. The drop in the city’s luxury market began in September, with the collapse of Lehman Brothers. The shrinking demand for luxury real estate led to an inventory increase of 25.5 percent between the fourth quarter of 2007 and the same period in 2008.