Supply scarcity boosts prices for Manhattan condo developers

New York /
Sep.September 23, 2011 10:14 AM
alternate
text
From left: One57 and Extell Development President Gary Barnett, the Touraine and Toll Brothers CEO Bob Toll and MiMA and Related Companies CEO Stephen Ross

There’s a scarcity of new development in Manhattan, and developers are licking their chops. According to Corcoran Sunshine Marketing Group data cited by the New York Times, by the end of 2011 just 1,111 new units will open in Manhattan south of Harlem. That’s down from 1,767 last year, ad 8,552 in 2007.

That’s good news for developers — such as Extell Development, Related Companies and the Toll Brothers who are
delivering One57, MiMA and the Touraine, respectively, to the market — who recognize the scarcity of supply and are raising prices and foregoing concessions. In fact, some developers are even refusing to negotiate with buyers on price.

Meanwhile, in Brooklyn, there’s a condominium boom of sorts underway, though mostly in smaller buildings. The borough’s lower prices and the relatively small sack of the projects has made financing easier to obtain for developers. In the second quarter of 2011, 24.6 percent of sales were new developments, compared to 14 percent in the prior year quarter, according to data from appraiser Jonathan Miller. [NYT]


Related Articles

arrow_forward_ios
One Manhattan Square Extell Development CEO Gary Barnett (Credit: Curbed NY)
Extell lands $690M refinancing package for One Manhattan Square
Extell lands $690M refinancing package for One Manhattan Square
49 East 10th Street and Barbara Corcoran (Credit: Google Maps and Getty Images)
Corcoran to shut down office in building partly owned by Barbara Corcoran
Corcoran to shut down office in building partly owned by Barbara Corcoran
Corcoran President & CEO Pamela Liebman (Credit: Corcoran, Getty Images)
Welcome to Queens: Corcoran opens first borough outpost
Welcome to Queens: Corcoran opens first borough outpost
Extell sells One57 sponsor unit for $17M
Extell sells One57 sponsor unit for $17M
Extell sells One57 sponsor unit for $17M
Stephen Ross (Getty, iStock)
Stephen Ross puts $500K into PAC. Where’s the rest?
Stephen Ross puts $500K into PAC. Where’s the rest?
Related Companies chairman Stephen Ross and Kara Ross (Getty)
Stephen Ross, wife to divorce after 18 years
Stephen Ross, wife to divorce after 18 years
(iStock)
Brooklyn, Manhattan rental markets “beginning to pivot”
Brooklyn, Manhattan rental markets “beginning to pivot”
The soft market for luxury units has some developers hard up. (Getty)
Buyers taking advantage of New York City’s condo glut
Buyers taking advantage of New York City’s condo glut
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...