(NEW YORK, NY) —With an oversupply of luxury apartments in New York City, many sellers will have to rethink marketing strategies or brace for losses.
We reported back in November that penthouses were sitting on the market for an unsettling amount of time, many of them with an asking price of over $15 million.
Reports for the first half of 2018 showed that Manhattan’s luxury condo market saw a nearly 40 percent decrease in sales, according to The Real Deal. For properties over $4 million sellers are biting their tongues and accepting offers that are typically 15 to 20 percent below the asking price.
PropertyShark spoke with real estate broker Jim Farah to discuss the glut of luxury condos in New York City. He explained that while real estate markets have cycles of oversupply, it is also important to take into account that there are fewer buyers from overseas.
Farah also commented on one of the markets biggest questions: Will additional incentives make up for high listing prices?
He stated that extra amenities are not reliable alternatives. Agents must reexamine their focal points, understand what’s not working, and potentially expand their focus to different markets.
“Another name for New York City can be ‘Always Changing!'”- Farah Goodwin Team At Compass
According to RobbReport, Jonathan Miller, chief executive of New York estate appraisers Miller Samuel, predicts that in 2019 nearly 8,000 luxury units will be for sale, over 1,000 more than the previous year.