Overnight, condo developers abandon concessions

New York /
May.May 11, 2012 02:30 PM

There’s been a sudden shift in the city’s condominium market: developers are no longer offering incentives. According to the New York Times, a continued decline in inventory combined with a rise in sales activity has altered the balance of power practically overnight. In April, 1,624 listings came on the market in Manhattan, according to UrbanDigs, an 8 percent decline from April 2011 and a 21.5 percent slip compared to April 2010. Meanwhile, 1,164 contracts were signed in April, a 13.6 percent jump from the same period a year ago. In March, the year-over-year increase was nearly 16 percent.

As recently as late last year, buyers could expect to secure concessions in negotiations, including free storage spaces and owner-paid taxes. But not any more.

Many developers are even raising the prices of their developments. For example, when the Rudin family saw the hoards of people attending their launch of sales at 130 West 12th Street, they upped the asking prices on units, some by 6 percent.

And it’s not just limited to prime areas of Manhattan. At the Peaks Mason Mints factory conversion, located at 20 Henry Street in Brooklyn Heights, Canyon-Johnson Urban Fund raised asking prices by 5 percent.

There are still some developments that are offering incentives, and the first and last groups of buyers can still sometimes land deals, but the power is squarely in developers’ corner. [NYT]


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