(NEW YORK, NY) — New York City’s luxury market has seen an abundance of penthouses over the past year. As of October 12, there were 443 penthouses for sale, a 16% increase from the same time last year, according to The Real Deal.
Of those units, 81 are asking for over $15 million. Agents are scrambling, looking to see what caused the slowdown, and some are even willing to accept offers below the asking price.
So, what happened? Some suggest that a penthouse is no longer a sought-after trophy for the wealthy. In fact, the luxury of a top floor property with spectacular views has ceased to be a strong selling point.
Putting that point into perspective, over the past few years, the luxury market has been introduced to some breathtaking developments that offer amenities so extravagant, they’re in competition with each other over whose 12,000-square-foot fitness facility offers more gold-plated dumbbells.
As these developments continue to introduce new lavish amenities and benefits, the old-school penthouses continue to fall to the bottom of the list, or should we say, stay on the list for an unsettling amount of time.
Penthouse sellers and agents are adding new perks to help catch the attention of wealthy New Yorkers. For example, a penthouse in Hell’s Kitchen with an asking price of $85 million has been on the market for around two years. In an attempt to sell it, the building’s president added in some extravagant perks including a $1 million yacht, a one-year vacation rental in the Hamptons, two Rolls-Royce Phantoms, and two tickets for a trip to outer space. Unfortunately, there has yet to be a lucky buyer.
At the end of the day, the luxury market is shifting. Residents don’t mind living on the lower floors of buildings as long as it comes with jaw-dropping amenities. As we see more and more of this shift, penthouses will need to step up their game to stay in the game.