Condo demand frenzy sees developers hike prices

TRD New York /
Feb.February 12, 2013 10:00 AM

Developers of condos in Manhattan are responding to steeply escalating demand by raising prices on unbuilt units as often as twice a month, Bloomberg News reported.

At the same time that home sales hit a decade high in the fourth quarter, Manhattan’s inventory of homes for sale dropped to its lowest levels in at least 12 years, according to appraisal firm Miller Samuel. This gap has led to instances of rapid price hikes, such as the ones at the Walker Tower condominium site in Chelsea, being developed by JDS Development Group and Property Markets Group. JDS’s Michael Stern, who was recently profiled by The Real Deal, told Bloomberg News that he and his partners have raised prices on the under-construction units at the building 13 times.

“I didn’t let the market conditions of the day dissuade me,” Stern said of his 2009 acquisition of the site. “But I can’t say I thought prices would be quite as lofty as they’ve proven to be.”

At least 21 new condo buildings in Manhattan, comprising 1,188 units, saw price hikes in 2012, according to the office of New York State Attorney General Eric Schneiderman. The frenzied market, CORE’s chief executive Shaun Osher told Bloomberg News, is showing signs of returning to boom-era practices, such as buyers putting deposits on unfinished units. [Bloomberg News]Hiten Samtani

Related Articles

Larry Silverstein (Credit: Getty Images, iStock)

Silverstein’s lending biz could get a boost from the weak luxury condo market

111 West 57th Street (Credit: iStock)

Another legal door closes for jilted investor at 111 West 57th Street

Supreme Court Judge rules against LES development

Two Bridges developers plan to contest judge’s ruling against plans for LES mega development

JDS Development's Michael Stern and a rendering of Two Bridges (Credit: Rendering by Handel Architects via Curbed NY)

Court decision throws JDS’ controversial Two Bridges development into jeopardy

Michael Stern and 212 West 18th Street, Unit 15B

JDS’ Michael Stern lists Walker Tower pad
for $28M

From left: JDS Development Michael Stern, 111 West 57th Street, and Property Markets Group founder Kevin Maloney (Credit: Getty Images)

Sour grapes at 111 West 57th: AmBase tries again to reclaim the Manhattan supertall

Renderings of 9 DeKalb Avenue in Brooklyn, 333 Schermerhorn Street in Brooklyn, and 11-35 49th Avenue in Long Island City (Credit: JDS Development and Elegran)

These were the top 10 outer borough loans in April

JDS secures $664M construction loan for Brooklyn’s future tallest tower

JDS secures $664M construction loan for Brooklyn’s future tallest tower