Real Estate Prices Skyrocket In New York, Can the Market Sustain These Multi-Million Dollar Condos?

The real estate market in New York is hitting an all-time high, with developers caught in a seemingly endless struggle to sell the biggest, best and priciest penthouses in the city. The latest chart topping residence is a 21,000-square-foot, three-story condo on the top of the former Sony building. The home will boast eight bedrooms, eight bathrooms, a wine room, spa and office, and will occupy the 33rd through 35th floors. While the property is still under construction, Chetrit Group has set their estimated asking price at $150 million. This, of course, would easily beat out the second most expensive penthouse, a $130 million home planned by Zeckendorf Development, a residential property that is also still under construction.

nyc condos

But both of these properties have yet to be sold (or even completed) and take away the title from the current record holder, a duplex penthouse at One57 that sold for $100.5 million late last year. The two-story penthouse was the first in NYC to sell for over $100 million. Now, many are considering this an investment as developers are consistently turning over more expensive and more luxurious properties. “No one knows where the ceiling is, and they’re trying to find it,” Nancy Packes, a marketing and design consultant to New York residential builders told Investor’s Business Daily. “The amount of global wealth being created is still great.”

nyc condos

CNBC is reporting that New York is one of the hottest markets for luxury residences with the value of “high-end residential property [soaring at] 18.8 percent between December 2013 and December 2014, far outpacing the global average price growth of two percent.” But not everyone is as convinced the market will continue to boom. Even the record holding $100.5 million home was initially listed for $115 million. “What we’ve seen is this rapid appreciation, but this is not sustainable,” developer Don Peebles told Bloomberg TV. “There’s just not that demand for that many of these units.”


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