Last week, I mentioned the Manhattan luxury market achieving its strongest showing in four months. Well, it continues to impress, and its momentum shows no signs of waning. According to Olshan Realty, the luxury segment witnessed another robust week, with approximately one-third of the 21 contracts signed were for homes priced at $10 million and above.
Penthouses in Tribeca and the Upper East Side led the charge with the highest dollar contracts, priced at $28 million and $19.75 million, respectively. Notably, the Tribeca triplex spanning 5,000 square feet was initially listed at $32.5 million in July before undergoing a $4.5 million reduction. Despite this adjustment, the luxury market exhibits considerable growth and strength compared to where it was a couple of years ago.
For instance, a midtown penthouse duplex at the ONE11 Residences—a Thomas Juul-Hansen designed masterpiece crowning the iconic Thompson Central Park Hotel—debuted on the market in September 2022 with an asking price of $14.5 million. The price was subsequently raised to $16.95 million even before securing a buyer. Remarkably, this luxurious unit went into contract two weeks ago. Although this scenario is somewhat uncommon, it underscores that prices are rising.
Mindful of the economic and geopolitical landscape, it's conceivable that we may witness a gradual uptick in prices to continue within the thriving luxury market. Although this doesn't directly affect the non-luxury sector, its ripple effects could subtly shape the overall market dynamics. With that said, it's important not to conflate the two markets, which are independent of one another. Yet the anticipated price creep in the Manhattan residential market overall, resulting from varying factors as mentioned in past emails, remains on my radar and a topic of ongoing discussion.