Despite an overall glut in luxury apartments in Manhattan, apartments on Billionaire’s Row are rising in price regardless, according to Bloomberg.
Developer Michael Stern, who co-developed 111 W. 57th St. is hiking prices on eight units in the middle of the tower from $1 million to $1.75 million on apartments that are priced between $27 million and $30 million dollars. Changes reflect increases of between 3.5% and 5.6%.
Stern said:
“Candidly, I think the building is a little bit underpriced. This building is really a sculpture in the sky. There’s nothing else like it, and we’re going to price it for what it deserves.”
The 60 unit project is now nearing completion and potential buyers are able to tour the property and experience its unobstructed views of Central Park from higher floors. Developer Stern says this gives the property an advantage over competitors that have less impressive views. He also conveniently declined to say how many condos have sold in the property, but one penthouse that was listed at $50 million is under contract.
The increases come months after Ken Griffin set a record by paying $238 million for a penthouse at 220 Central Park South. However, they also come at the same time that sales of ultra-luxury apartments are on the decline. In Q2, 19% of all purchases in new developments were priced at $5 million or higher – the lowest share in 10 quarters.
In the second quarter, units priced at $20 million or more offered average discounts of 14%.
At 111 W. 57th St., the condos that are getting marked up are in the middle of the tower. They all have three bedrooms, three bathrooms and about 4500 square feet of space. Inclusive of the price increases, they are now going to be priced from $6300 a square foot to $6900 a square foot.
“When they walk into this building and see and feel the proportions and understand the grandeur of the spaces — people get it,” Stern concluded.
Or, as one Fin Twit member put it…
Fed has to cut rates https://t.co/pjnp0pI6aj pic.twitter.com/ECjLjhmMF0
— Hipster (@Hipster_Trader) July 14, 2019
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