Central Park Tower is looking for a $4 billion sellout, the priciest yet in New York City, but will it actually get there? That’s the question The Real Deal is asking in a new piece examining the sale of ultra-expensive apartments in the city.
TRD has specifically focussed on the $60 million plus bracket as Central Park Tower has 20 condos asking that amount or more. Last month, the exorbitant prices and floorplans for the Extell-developed condo were released, and showed that the most expensive apartment (so far) would ask a whopping $95 million.
TRD’s analysis revealed that only 61 apartments asking over $30 million have sold in Manhattan since 2012. When you look at apartments over $60 million that number drops down to just 13.
Brokers TRD spoke with said this apparent slowdown has a lot do with the plethora of options buyers now have to choose from in the ultra-luxury market: Central Park Tower is directly competing with 520 Park Avenue, and 220 Central Park South, in the immediate vicinity.
Brokers also mentioned that at this price point, buyers tend to take longer to make decisions (that makes sense obviously), and hence the seemingly slow process of closing such deals. Things maybe looking up just a little bit this year: a $65 million penthouse recently went into contract at 70 Vestry in Tribeca, and in June, two apartments asking over $70 million, also went into contract at 520 Park Avenue.
One broker went so far as to predict that between 15-20 deals will close on apartments priced above $50 million, in 2018, so maybe Central Park Tower doesn’t have all that much to worry about after all.