The world of upscale real estate has seen increased competition in recent years, but few markets can rival New York City. The American metropolis has seen a slew of high end residential developments breaking ground in recent years, with prestigious locations such as 432 Park Avenue dominating luxury sales. Times are changing rapidly however, and there is much to be learned about the future by looking at sales in 2018.
According to Curbed, only three of the top twenty sales in New York City last year were of residences at 432 Park Avenue. This is a major change from previous years when the Rafael Viñoly-designed skyscraper dominated the bulk of all high end sales within the city.
Instead, it was the more recently built 520 Park Avenue that constituted the two most expensive sales. Sold for $73.8 and $62 million respectively, these two properties represented the zenith of New York City’s 2018 real estate market. The rest of the top sales for the year constituted established condos and penthouses. All properties were located in Manhattan.
What does all of this mean for 2019 and going forward? First and foremost is the fact being reinforced yet again that bigger isn’t always better. The super-tall skyscraper at 432 Park Avenue made a name for itself by being the tallest residential building in the world. Height isn’t everything though, as the property was outsold by the shorter and less flashy 520 Park Avenue. The newer building is more reserved and traditional looking, blending in seamlessly with the New York City skyline.
The interior of 532 is opulent and timelessly elegant however, standing in stark contrast to its taller competitor’s chic minimalism. Apparently, old fashioned luxury is very much in style in the Empire State.
The other big takeaway from 2018 is that gentrification has its limits. In recent years the city has gone out of its way to promote Brooklyn and Queens as possible alternatives for high end home buyers to look at. Luxury real estate in these districts is by no means cheap, but the prices have remained consistently lower than their Manhattan counterparts. People still think of Manhattan first and foremost when they think of New York City luxury living.
So for developers and real estate brokers looking to make a go of it in the future, be sure to take these things into consideration. Buyers who pay premium prices are going to want a property that they can show off. Also make sure that the property is in Manhattan as for right now and the foreseeable future, that is where the money is at. It would be wise to heed these trends and capitalize on them.