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Luxury market soars after a slow September

Sutton Tower in Sutton Place Neighborhood of Manhattan

And just like that, the Manhattan luxury market bounces back signaling the arrival of the fall sales season. Following a quiet period in early September due to the start of the school season and Jewish holidays, the luxury market experienced a surge in both activity and price growth. This past week, 26 contracts were signed totaling $228.7 million in sales, the highest dollar value since mid-July which rang in at $246.95 million. This is up six signed contracts from the previous weekand 12 contracts more than the week prior to that.

The ultra-high-end luxury market—homes listed at $20 million or more—has witnessed a remarkable 300% surge this year, with new developments garnering significant attention from foreign buyers. Many of the large deals are happening off-market and the luxury market is performing well because it, in large part, is insulated from interest rates since most buyers are all cash or financing against other assets. It also helps that there is limited inventory.

Foreign buyers are eagerly embracing the latest new developments, while domestic buyers appear cautious, biding their time. If there are further geopolitical changes favoring the U.S. and a modest weakening of the dollar, or if other currencies strengthen, it could trigger a significant surge in activity.

The two largest deals were at Hudson Yards and Central Park Tower. The first was the penthouse at 15 Hudson Yards, which had an initial asking price of nearly $25 million, considerably reduced from the original $32 million when it was first listed four years ago. The second most expensive property to enter contract last week was at Central Park Tower with an asking price of $19.9 million, down from $21.5 million when it was first listed in 2018.

It’s clear that the Manhattan luxury residential market consistently excels due to the distinct profile of its buyers, who are less affected by economic fluctuations. Their financial stability and unique preferences make the luxury segment remarkably resilient and self-sustaining.


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