The Real Deal New York

Historic Manhattan properties routinely beat out new dev in closing prices

Upper-tier luxury properties are appreciating faster than the rest of the resi market on average
November 18, 2018 03:00PM

(Credit: 20th Century Fox)

New development is a fleeting business and, with some of its toughest competition having a head start on sales and marketing by decades,  it’s not even a fair fight.

A StreetEasy comparison of Manhattan’s largest closings (mainly condos) in 2005 and 2017 reveals that resales in landmark-designated buildings consistently nab deals that qualify as the borough’s top 10 percent, while new developments are one-hit wonders that slip from the upper-tier in short order.

Although new development dominates the top 10 percent of Manhattan’s closings any given year, the new buildings (defined as less than two years old) are quickly replaced by even newer projects. Meanwhile, the same historic buildings, which were home to nearly half of the biggest closings in 2005, continue to trade at in the top echelon of the market 12 years later, StreetEasy found.

“Wealthy buyers all want to own a piece of New York history. Once a historic apartment comes onto the market, the price will be pushed up,” StreetEasy’s analyst Nancy Wu told Mansion Global.

In 2005, the price threshold for the top 10 percent of resi listings was $1.9 million. In 2017, it was $4.2 million. According to the report, median prices over the 12-year period grew at an average rate of 8 percent, compared to the borough’s average of 5 percent.

Next year, the playing field will become even more cut-throat with about 7,900 new condos coming online in Manhattan alone — a recent record that exacerbates an inventory glut that’s been building for years. [Mansion Global] — Erin Hudson