Price deflation has hit a "Billionaires' Row" condo in New York City.
Yet, even before the coronavirus became widespread, high-end real estate prices had started to slump -- not only in Manhattan, but in other major global cities.
The Oct. 4, 2019 Elliott Wave Financial Forecast, a monthly publication which provides analysis of major U.S. financial markets, said:
In real estate, the bellwether housing markets of London, San Francisco and New York City continued to decline in August and September. In San Francisco, August figures showed a 0.2% decline in home prices relative to August 2018. London home prices fell 1.7% from September 2018. According to Fox News, NYC prices are in a "Near 'Free Fall.'" In the third quarter, the median sale price for a New York City home declined 17% from the third quarter of 2018. "It's Now a Buyers' Market in Manhattan," says an October 2 headline in The New York Times.
More than a year later, it continues to be a buyers' market for luxury real estate in the nation's largest city:
Here's an excerpt from a Dec. 7 CNBC article:
The seller of a luxury condo apartment on Manhattan's Billionaires' Row took a loss of at least $12 million to offload the property, according to public filings.
The 4,500-square-foot condo at 157 W. 57th St., or One57, went into contract last week after being listed for $22.5 million, according the Olshan Luxury Market Report, which tracks Manhattan sales contracts. The purchase price is unknown, and brokers declined to comment on price or the identity of the buyers or sellers.
The apartment was purchased by the seller in 2014, at the peak of the Manhattan real estate craze, for $34 million. Assuming that it sold for below the listing price -- which is likely in the current market -- the seller took a loss of about $12 million or more.
"This is the best buyer's market I've seen," said [a] broker...
The multimillion-dollar loss highlights the dramatic declines in value and the wealth destruction experienced by buyers who paid top dollar for the glamorous super-towers built in midtown Manhattan. One57 was the king of condos in 2014 -- it was the tallest residential building in the city at the time, soaring more than 1,000 feet, with a screening room, art atelier, private fitness center and a Park Hyatt on the lower 18 floors...
Even before the pandemic, One57's fortunes were turning. An even taller condo tower was rising next door and there was a glut of new condo apartments in midtown. State and local tax changes in 2017 made things even worse. Resale prices at One57 began to slide. Then came the coronavirus pandemic, and New York City residents moved to the suburbs. Apartment sales in Manhattan fell 46% in the third quarter, with average prices dropping anywhere between 5% and 10%.
An apartment on the 88th floor sold in May for $28 million, which was $19 million less than the seller paid in 2014.