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
From left: 80 Columbus Circle with Robert Stiller and 737 Park Avenue with Hamad bin Khalifa Al Thani (Photos via Google Maps, Agnovos, State of Qatar, Godsfriendchuck/Wikimedia)
Mandarin Oriental, 737 Park units sell at substantial losses
Mandarin Oriental, 737 Park units sell at substantial losses
Steve Cohen and 151 East 158th Street (Getty, Google Maps)
Steve Cohen’s $30M condo sells above asking — after a 74% cut
Steve Cohen’s $30M condo sells above asking — after a 74% cut
Nicole Oge, Casa Blanca founders Hannah Bomze and Erez Zaurer (Getty, Casa Blanca)
Former Elliman, WeWork marketing chief joins “Bumble for homes” startup
Former Elliman, WeWork marketing chief joins “Bumble for homes” startup
470 Broome Street  and Rayo Withanage (Photos via Saltzman Architects, P.C. and Withanage)
From Picasso’s estate to squatting in Soho: The 470 Broome Street affair
From Picasso’s estate to squatting in Soho: The 470 Broome Street affair
Tenants are singing longer leases to lock in low rent. (Getty)
Tenants locking in longer leases as apartment rents rise
Tenants locking in longer leases as apartment rents rise
arrow_forward_ios

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

Loading...