- The coronavirus pandemic has stalled the luxury real estate market in New York City.
- According to a report by Olshan Realty, the first week of August saw the lowest number of homes sold for $4 million or above in more than 10 years.
- The Getty Residences, a luxury building that overlooks the High Line, has slashed the prices of its four remaining units, one by nearly 53%.
- As of the end of June, apartment vacancy rates were at their highest point in 14 years, per Douglas Elliman.
- Visit Business Insider's homepage for more stories.
A luxury building in Manhattan is selling its remaining four units at a major discount, and one is nearly 53% off.
The Getty Residences is located in Manhattan's Chelsea neighborhood, where the median home value is currently $1,038,882. With views of the High Line, the building has been offering condos that were selling anywhere from $16 million to $59 million. In fact, Curbed reported in 2018 that the sale of the $59 million penthouse was the most expensive purchase in downtown history
But those price tags may be a thing of the past for The Getty. While the market adjusts to a new normal, the residence has slashed the prices of its remaining full-floor residences.
The four units boast over 3,000 square feet and either three or four bedrooms. All have seen a more than 40% discount from their original asking price this past winter and now sit at price points of between $9 million and $14 million.
The New York City housing market has been slow to bounce back since the onset of the coronavirus pandemic, and its luxury sector seems to be suffering the most. In fact, as Mansion Global reported, Olshan Realty found that just six homes with asking prices of $4 million or above were sold during the first week of August, the slowest start to the month since 2009. In addition, the lack of buyer interest has sent apartment vacancy in Manhattan to 3.67% as of the end of June, which Inman reported was a 14-year high, citing Douglas Elliman data.
At such a slow pace, sellers of top-tier units are being forced to readjust their strategies and drop their prices, which is exactly the case for The Getty Residences.
The building's residence #5 has received the largest discount.
According to StreetEasy, the condo was first listed in January for $19.5 million. It was then cut to $14,875,100 at the end of February, and to $10,475,000 at the end of July.
The 3,857-square-foot unit comes with a 159-square-foot terrace that boasts views of both the High Line and the Hudson River.
The Getty Residences is just one example of what may be the fate for luxury listings in the near future. Even in the $10 million range, residence #5 and its three companions may have some difficulty selling. According to Olshan Realty, just 21 homes with asking prices of $10 million or above were sold from March 22 through August 9, compared to 77 that same time last year.
Source: Read Full Article