(NEW YORK, NY) — In an estimate by real estate appraiser, Jonathan Miller, it is stated that 40 percent of Billionaires’ Row condos are unsold, yet these buildings are not new to the market. With some of the world’s most prestigious neighbors, these buildings are lacking the buyers.
“When people come here from other parts of the county and from around the world, the first thing they want to see is Billionaires’ Row,” said Dolly Lenz, luxury real estate agent, to the Post. Lenz added, “We tour them through the properties but many felt they were too pricey for the market — $7,000, $8,000, and $10,000 a square foot.”
Of the eight mega-towers on Billionaire’s Row, Miller estimates that 111 West 57th Street, of JDS Development Group, has sold the smallest percentage of condos. At just a mere 20 percent sold, of 60 total units, a whopping 48 units remain unclaimed.
Following 111 West 57th Street, at Aby Rosen’s 100 East 53rd Street, 63 of the building’s 93 condos are still available, after three years on the market.
Extell’s One57 was unveiled over seven years ago, yet Miller states that nearly 50 apartments have yet to find a buyer. (Extell disputed this finding, telling the New York Post that One57 is “over 85 percent sold in units and over 90 percent sold in value.”)
The most well-producing building of the row is by architect Robert A.M. Stern, at 220 Central Park South. The most successful building has sold 80 percent (or 94) of its 117 condos, which are either closed or in contract.
Prices remain high in this exclusive area due to a few reasons.
- The cost of land acquisition, construction, marketing and building maintenance are factored into the listing price
- Developers write claused into their contracts that keep lenders from forcing them to drop prices in the event to be playing out.
There’s no doubt that there is a change in temperature in the New York real estate market. With a large portion of this luxury sky-high real estate remaining unclaimed after years of the market, should we be scared that the market will only get worse? Even millionaires and billionaires aren’t buying now, what’s next for Billionaires’ Row?