Manhattan hit by luxury homes sales slump

New development sales in Manhattan have dropped by 19% this year as a result of ‘citywide softening of the luxury market’.

According to a report by CityRealty, which offers analysis and guidance on the New York real estate market, the new development sales volume fell to $8.3 billion in 2017, from $9.4 billion the previous year. But despite this dip, CityReality remains optimistic about the future as average prices have reached a new benchmark, hitting $5 million for the first time.

The average price per square foot has also reached a new high of $2,350. If the Manhattan new developments currently under construction sell as planned over the next few years, the total number of new sales will not only rise but reach a record high by 2020.

CityRealty forecasts that the aggregate value of new development sales will reach an estimated $9.8 billion in 2018, $11.6 billion in 2019, and $11.9 billion in 2020. Contributing to those totals will be the construction and completion of high-profile and high price buildings like Central Park Tower at 225 West 57th Street. This projected $4 billion sell-out would be the largest in city history.

CityRealty projects that the average new condo price will reach $5.5 million and $2,975 per square foot by 2020.