Finding The Right Buyers For Ultra Luxury Condos

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 19^th 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 57^th 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.

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