Discover The Right Time To Sell Luxury Homes

The slowdown in the demand for luxury homes has resulted in a glut of new condos on the New York luxury market. Some developers who have just completed projects have decided to wait for prices to rise before trying to sell. The developer of the tower at 111 W. 57^th Street, for example, has all the documents necessary to begin selling, but is holding off due to the reduced demand for luxury condos. This property is the latest skyscraper to begin construction on Billionaire’s Row.

When the luxury market was booming, buyers bought homes that existed only as models. But now with the recent glut of luxury homes, it is better for the developers to wait until their project is nearly completed before listing the units. 5126 newly built residential units will hit the luxury market this year which is considered as the highest since 2007. 63 percent of these homes are considered luxury homes. Such homes are priced at $2400 or more per square foot.

However, many of these luxury apartments will stay idly on the luxury market for up to 3 months or more before they are sold. Many of these homes will be sold below the listing price. Compared to previous years, more condo towers are under construction right now in spite of the flood of luxury residences. Most of these are high-end condos and reports show that about 5377 mega-priced condos are currently being constructed. As foreign investors that dominated the luxury market are backing out, the market has become over-supplied with luxury condos.

Foreign Buyers

The purchasing power of foreign investors in New York luxury market has waned. This is a result of the strengthening of the US dollar against other currencies, the drastic decline of oil prices and the economic meltdown in countries such as China and Brazil. The shift in oil prices severely affected Russian investors, one of the largest groups of investors in the luxury market. It has been reported that the sale of luxury apartments declined in January and February this year by 30 percent when compared with the previous year. The reduced demand for mega-priced homes in Manhattan has made some developers delay starting projects, while other developers have changed their plans and models to build apartments that will appeal to a wider range of buyers. This is clearly not the optimum time for selling luxury homes in New York City.

In the heart of Billionaire’s Row, a collection of super tall buildings near the southern edge Central Park, is 111 W. 57^th Street. The developer of this 1427-foot tower plans to delay the marketing of its units until construction rises up beyond 800 feet. This 82-story building is currently just past its first floor, and is expected to be completed by 2018. According to the legal documents pertaining to this skyscraper, full floor homes will start from the 25^th floor. The units at this level will be priced at $15.5 million. The most expensive unit in this tower is a four-bedroom duplex penthouse. This duplex will start from the 74^th floor and is priced at $57 million. The two topmost units at the 80^th and 82^nd floors have not yet been priced.

Tallest Towers

111 W. 57^th Street will certainly be counted among the super-tall residential towers of New York City. Like One57, which is the building that spearheaded the boom in the luxury development, the design of this building will be its selling point. The structure will be a sight to behold and passers-by and tourists will be struck by its height and grace. The best time to market units in a building is when that building is the center of attention.

Contrarily, the sale of units at One57 started nearly three years before the residents moved into the building. The buyers were shown aerial pictures of the apartments taken by a camera mounted on a drone helicopter. The pictures showed different views from the building taken at different heights. The sale of apartments at One57 reached $1 billion within six months and the developer even increased the prices twice. Meanwhile downtown, the developer of 100 Avenue A started sales of apartments three months after the building reached its entire eight-story height. The 33 unit building is expected to be completed in July. Prospective buyers were promised that they will be able to move into the building this year. 432 Park Avenue is currently the tallest residential building in New York with a height of 1400 feet and about 141 apartments.

Buyers tend to become jittery about what is happening to their money while they wait for their apartment to be completed. So, it is better to start marketing when the building is almost completed or even wait until the project is completed entirely, allowing the prospective buyer to admire the beauty of the tower.

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