The $87.5M Penthouse Deal That Kept NYC's New Dev Afloat in August
August was a slow month for new development, except for one massive deal in the West Village, which helped maintain high deal volume despite a decrease in contract activity.
August is typically a slow month for new development in New York City, but one deal in the West Village managed to keep the market afloat. According to a Marketproof report, the city recorded 201 contracts, a decrease of 22 percent from the previous year and 9 percent from July.
Despite the decrease in contract activity, deal volume actually rose by 13 percent, reaching $597 million. This was largely driven by the sale of a penthouse at 140 Jane Street, which was listed for a whopping $87.5 million.
The top three deals in August accounted for over 20 percent of the total volume, showing just how influential these high-end properties can be in the market. However, this doesn't mean that the rest of the market is thriving. As one broker noted, "The high-end is strong, but the rest of the market is struggling."
While the penthouse deal at 140 Jane Street certainly helped maintain high deal volume, it also highlights the disparity between the luxury market and the rest of the market. As the city faces an oversupply of luxury condos, the demand for more affordable options remains low, leading to a slow and struggling market.
Despite this, developers continue to push forward with new projects, hoping to capitalize on the high-end market. But as the numbers show, it may be time for developers to shift their focus to more affordable options in order to keep the market afloat.