Luxury residential prices hit records in 2015, with more major sales set to close in the next few months, but will 2016 be another banner year, or is the market slowly heading downward?
This year saw a penthouse at Extell Development’s One57 close for just over $100 million, a city record. Hedge funder Bill Ackman bought a six-bedroom, two-floor unit at the same building for $91.5 million. Fellow money manager Kenneth Griffin entered into a rumored $200 million contract for a triplex at 220 Central Park South.
Two of the five top sales this year were co-ops, the New York Times reported. A duplex at 834 Fifth Avenue fetched $77.5 million. Ukrainian billionaire Leonard Blavatnik bought that unit from New York Jets owner Woody Johnson. A full floor at the Sherry-Netherland at 781 Fifth Avenue closed at $67.5 million in March.
The most expensive townhouse sale of the year was 125-127 East 70th Street on the Upper East Side, which sold for $37 million. Developer David Amirian also sold 16 East 10th Street in Chelsea for $32 million.
Still, demand at the top end of the market seems to be fading, at least somewhat. Top developers, speaking at a summit in November, said the “irrational exuberance” of 2013 and 2014 was in the past, and what buyers remained were becoming more hesitant. A rough analysis performed by the The Real Deal back in June found there may be less global demand for top-end condos than many developers hope. [NYT] – Ariel Stulberg