Lately, many of the
luxury-condo towers located in Manhattan are coming equipped with super
amenities like those found in Miami’s ultra luxury condos. Such amenities
include plunge pools, ice skating rinks and private elevators. The presence of
valets, concierges and spas are now viewed as standard for luxury condos. One
example is the luxury tower at 15 Central Park West, completed just before the
global recession set in. The building enjoys views of Central Park and the
Hudson River, and offers its residents a fancy restaurant where a chef can
rustle up a four-course custom menu for diners or deliver a romantic dinner
directly to a couple’s apartment. As if that were not enough, this luxury condo
building boasts a 14,000 square foot gym, a sky lit 75-foot swimming pool, a billiard
room, a spa, a kids’ playroom, staff quarters and a wine cellar.
Developers have divided properties in the luxury
market into three sub-groups depending on price per unit square foot. These
include “luxury” properties ($2,300 to $3,300), “super luxury” properties
($3,300 to $5000) and “ultra luxury” properties priced at $5000 and above.
Super luxury and ultra luxury condos emerged with the recent trend of including
super amenities in residential towers. Such amenities found in these towers do
not exist in your average apartment. They include basketball courts, swimming
pools, children’s playrooms, libraries, catering kitchens, lounges and guest
rooms with fire places, yoga studios, gyms, spinning rooms and even hamams.
Recently, the hamam, or Turkish bath, has become part of the amenity package,
and it is seen by the super rich as standard for a home.
Other examples of luxury properties with super
amenities include a replica of the 19th century Cast Iron House in
TriBeCa which was redesigned into 13 exquisite white condos. The building
offers a plunge pool, a deluge bath and a Turkish-style hamam. There is a new
tower under construction which will offer an “ice room” instead of a plunge
pool. The “ice room” is equipped with a machine that produces snow which you
can apply on your body and an adjourning relaxation room. The swimming pool at
One57 has a view of Carnegie Hall and past performances at the hall are piped
into the water such that you can listen to it while swimming. Most of the new super
tall towers have private garages with covered gated driveways.
Amenities such as yoga studios, performance
rooms, Turkish-style hamams and even pet wash rooms found in other newly built
luxury condos can entice prospective buyers to empty their wallets. Also, the
availability of a sommelier, a valet and a concierge can serve as a window
dressing for the sale of these ultra luxury condos. This type of perk can be
removed, of course, should there be a downturn in the luxury real estate
market.
Interestingly, while Chinese buyers are not
troubled by the prices of these ultra luxury condos, their European
counterparts will be conscious of the monthly cost of the condos. Thus, they
will not purchase these properties if they are too expensive. So developers who
are adding these super amenities should ensure that they are targeting the
right buyer. For instance, Indians are only allowed to invest a limited amount
of money in foreign countries. As a result of this limitation, it is the norm
for Indian families to pool their resources in a bid to invest in Manhattan
properties. Despite the amount they will spend on the purchase of a condo, they
will ensure that they get their money’s worth. Usually, Indian investors
purchase properties with at least three or four bedrooms.
Conversely, Chinese investors are interested in
luxury properties as a store for their wealth. They are after the profit the
luxury properties will generate when they are resold. Chinese buyers are the
right buyers for ultra luxury condos with super amenities fit for royalty.
These buyers frequently inquire about available ultra luxury condos whenever
they are in Manhattan. They are ready to buy these properties as soon as they
hit the real estate market.
Billionaires’ row refers to a stretch of super
tall towers built on and around 57th Street. These skyscrapers were
built to meet the demands of wealthy Chinese and Russian buyers. These foreign
investors stormed the New York luxury market in search of second homes that
will serve as a store for their wealth. One57 was the first skyscraper built on
billionaires’ row and it contributed immensely to the trend toward ultra luxury
homes. One57 is a super tall building with 90 stories above ground. It was
regarded as the tallest residential tower in New York when it was opened in
2014, and is a sight to behold with its ridged sides resembling a cascading
waterfall. A year later, nearby 432 Park Avenue became the tallest building
with up to 100 stories.
Lately, many investors have become scared of
further investments in luxury condos as a result of weakened Asian currencies,
the plunge in oil prices and the U.S presidential race. The demand for luxury
properties has slowed down, which resulted in a glut of the luxury condos and a
cut in the purchasing power of the foreign investors. This slowdown has created
problems for condo developers, as they may have to wait for prices to rise
before selling new units. Advertising super amenities seems to be one possible
solution to this problem.
Please visit us at: www.RubenPerezNYC.com
Please visit us at: www.RubenPerezNYC.com
