The price per square foot of newly-constructed condos in New York jumped 32% between 2013 ($1,656 per square foot) and 2014 ($2,193 per square foot). The wealthy wanting to buy today in New York can find much better value for money in the secondary markets, particularly in Manhattan neighborhoods like Gramercy Park or Yorkville, where prices are relatively cheap compared to the freshly-built high-rise clusters erupting in midtown.
Some background: Last year, the number and dollar value of newly-developed condos that closed above $10 million more than doubled. Those 130 condos, totaling $2.6 billion, even pierced highs hit during the housing boom. No surprise, then, that more are coming online. Luxury development volume in 2015 will be 2.5 times last year’s level, claims Jonathan Miller, president of real estate appraisal company Miller Samuel, and a comparable amount of building is expected to rise in 2016. In fact, over the next five years, five Manhattan towers—like 432 Park Avenue and 220 Central Park South—are expected to fetch one-third of the $32 billion in overall new development sales, according to industry tracker CityRealty.
See more at Barron’s.