New Condos at the top (with extremely high price-per-square-foot value)

Old Condos in the middle (with Board requirements increasingly similar to Co-ops)

Townhouses (oscillating between Condo and Co-op prices depending on width and lot size)

Co-ops at the base.

Leading New Condo Pricing (approximate pricing averages)*

Downtown

150 Charles Street                                    $3750/SF

Greenwhich Lane (Former St. Vincent’s)  $3100/SF

One Madison                                             $5061/SF

10 Madison Square West                          $3033/SF

56 Leonard Street                                     $3300/SF

Uptown

432 Park Ave                                             $6900/SF

One 57, 157 West 57 Street                      $6900/SF

22 Central Park South                               $5600/SF

Carlton House, 21 E 68 St                         $4800/SF

The Marquand, 11 E 68 St                         $4350/SF

Upcoming Condo Inventory

According to real estate publication The Real Deal, there are 47 new condo projects in the city. Nearly half are asking for over $3,000 per square foot, which is unprecedented. Only ten are asking for less than $2,000 a square foot.*

Up to this point, these pricy new developments haven’t had problems securing big asking prices; and the new developments that are negotiating are typically only moving about 3% off asking prices. Some of them are seeing easy sell-outs that surpass their wildest expectations. As an example, 150 Charles Street sold out in a matter of weeks, with many buyers unable to get in the door fast enough to scoop up the prized West Village luxury condos.

What remains to be seen is whether there are enough buyers to absorb these higher prices. There’s an astonishing amount of $20+ million inventory coming on the market. The priciest condo slated to come on the market is Zeckendorf’s 520 Park Avenue, with expected asking prices starting at $27m.** Many brokers are scratching their heads, wondering where all these buyers will come from to absorb this price point. On the other hand, developers who can figure out how to create smaller projects with more affordable options will see easy sell-outs.

What’s driving this escalating pricing trend?

Supply and Demand are key drivers for the success of the pricing across the city. Sources indicate approximately 10,000 new residential condo units will hit the market over the next three years. Though 10,000 units may seem like a lot, that’s a far cry from the 7,000 units that came onto the market in 2007 alone.*** Keep in mind, not only is inventory half what it was a few years ago (and inventory was painfully low then), but demand has risen simultaneously.