More money, less inventory, and the desire for BIG-BIGGER-BIGGEST have driven the New York City luxury home market into the $50 million+ price range. The $50 million mark was set last fall with the $53 million sale of the Harkness Mansion on 75th Street just off Fifth Avenue. Since then, a number of $50 million plus transactions have occurred in the city.
In June, developer Harry Macklowe purchased seven contiguous condominium units (with a total of about 13,000 square feet) at the newly refurbished Plaza. The price? $52 million. Macklowe’s transaction is one of two at the Plaza reported by The New York Times to be for more than $50 million. The other transaction has not yet appeared in public filings, but is said to be in the $56 million range.
This is further evidence that the real estate business is local, different markets are experiencing different things, and the luxury market continues to be the silver lining on the cloud of a generally soft real estate market.
