New York’s luxury market is slow. But its ultra-luxury market is booming

Sales over $25M increased 50% from 2015 to 2017

New York /
Dec.December 11, 2018 08:55 AM

(Credit: iStock)

An oversupply of product has led to slowdown in New York’s luxury real estate market, but sales of “ultra-prime” properties are continuing to climb.

Citing a Knight Frank study, Bloomberg reported that 153 properties in six cities worldwide sold at an average $43 million a house, or a total of $6.6 billion. Over the past year, 39 residential sales in New York were valued over $25 million, totaling $1.5 billion. The priciest section of New York’s residential market increased by 50 percent between 2015 and 2017, according to the report

These figures are in stark contrast to the rest of the city’s residential market, which saw an 8 percent decrease, year-over-year, in overall transaction value in the second quarter.

“In New York’s case, the story has been about the slowing market,” Liam Bailey, the global head of research at Knight Frank, told Bloomberg. “But the background is that the market has actually grown in sales, but there’s just that much more property to purchase.”

The high-end price growth in New York has been seen in other markets, too. Hong Kong had the most number of high-end sales valued over $25 million, ahead of New York, and then London.

Los Angeles also performed well, though its ultra-luxury market was down from its peak. In 2015, there were just five transactions above $25 million. In 2016, that number grew to 16, but last year there were just 12 transactions above $25 million. The average sale was $38.4 million.

According to Bailey’s research, there were about 130,000 people globally with investable assets worth $50 million or more. [Bloomberg] — David Jeans 


Related Articles

arrow_forward_ios
Here are the week’s top luxury sales

Here are the week’s top luxury sales

Here are the week’s top luxury sales
Clockwise from left: John D. Rockefeller, Izzy Englander, Steven Mnuchin, David Koch, Jacqueline Bouvier, and William Zeckendorf (Credit: Getty Images and StreetEasy)

For 15 years, David Koch lived at the world’s “richest building”

For 15 years, David Koch lived at the world’s “richest building”
Here are the week’s top luxury sales

Here are the week’s top luxury sales

Here are the week’s top luxury sales
Tommy Hilfiger and his recently sold estate in Greenwich, CT. (Getty, Janet Milligan)

Tommy Hilfiger’s Greenwich estate sells for $45M

Tommy Hilfiger’s Greenwich estate sells for $45M
Jenna Ryan was part of a group who flew on a private plane from Denton, TX, to Washington, D.C., with the intention of joining the protestors (Twitter.com/DotJenna)

Texas Realtor faces criminal charges for role in Capitol attack

Texas Realtor faces criminal charges for role in Capitol attack
Porch CEO Matt Ehrlichman (iStock)

Porch snaps up four startups for over $122M

Porch snaps up four startups for over $122M
Nir Meir Asks Court to Stop Eviction (Google Maps)

Nir Meir seeks to throw out Hamptons ejection suit

Nir Meir seeks to throw out Hamptons ejection suit
Robert Frank with 1021 Park Avenue and Ben Lambert with 28 Laight Street (Getty, Google Maps)

Who’s buying and selling Manhattan homes? Last month’s notable deals

Who’s buying and selling Manhattan homes? Last month’s notable deals
arrow_forward_ios

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

Loading...