_New York Super-Prime market: Key trends to watch
Both the New York and London markets are experiencing interesting market conditions. Following a period of strong price growth in the years up until 2015, the top end of the world’s most desirable property markets have experienced more sober conditions in the last two years. Buyers are becoming more discerning, even in this rarefied market.
Andrew Wachtfogel, Douglas Elliman’s Senior Vice-President of Research and Analytics, and Jonathan Miller, CEO of Miller Samuel, provide their views on how the top 1% of the market looks set to evolve.
The key themes to watch over the next 12 months include: -
- The impact of international demand on the super-prime markets globally – and especially in New York
- Growing competition from developers to position product, specification and services to justify super-prime price tags
- The impact of currency shifts. The dollar has nudged downwards in the last few months, further declines will strengthen global interest in New York real estate.
Expert view
We asked Andrew Wachtfogel, Douglas Elliman’s Senior Vice-President of Research and Analytics, for his view of the top end of the new development market, including what is selling and where.
How are sales volumes holding up?
Total transactions and volume for the Manhattan super-prime market (above $10m) surged at the end of 2016; this followed a slowing of demand during the presidential election campaign. Total transactions and volumes have slowed during 2017, though average pricing in the super-prime market has remained steady.
Which neighborhoods have seen the strongest activity in 2017?
Downtown Manhattan (south of 34th Street) has attracted significant buyer attention in 2017,with seven apartments priced from $28m to $65m entering contract this year. This includes Hudson River-fronting new developments: 160 Leroy and 70 Vestry, which have each sold both penthouses in 2017. Four sales here had a combined asking price of nearly $200m.
Where are the up-and-coming Super Prime neighborhoods?
The next wave of super-prime new developments set to launch through 2020 will be located in classic luxury neighborhoods, but will also continue the trend of expansion across Manhattan.
Several new developments are planned along the Central Park South/57th Street corridor, Central Park fronting Fifth Avenue on the Upper East Side, and Downtown near the Hudson River in West Chelsea’s gallery district. These new developments will provide super-prime buyers with a choice of locations and lifestyles across Manhattan.
What trends are you seeing?
Super-prime buyers continue to be attracted to branded residences within five-star hotel properties, along with iconic views of Central Park or the river.
In terms of features, off-street vehicular building access via private driveways and porte-cocheres are in demand as well as robust amenity packages including swimming pools within a suite of health and wellness features, and private outdoor space with views.
Download the New York Super-Prime Report for further analysis including a map of Manhattan's Super-Prime developments.