Luxury DailyNew luxury development projects in the NoMad, north of Madison Square Park, district of Manhattan indicate that the once-overlooked neighborhood is on the rise as other areas become squeezed.
Real estate firm Core recently closed sales for the residential condo 241 Fifth, commanding prices ranging from $820,000 to $10 million. Not to diminish the potential of parts of the city, Core also wrapped up sales further up Fifth Avenue for the property One Museum Mile on the same day.
“There’s a ceiling in every market, but I don’t see [development] slowing down soon, because there’s really no quality inventory on the market right now,” said Shaun Osher, founder and CEO of CORE, New York.
“It was all about how we told the story,” he said.
The NoMad district has been gathering momentum for a few years. A spate of restaurants, retailers and other attractions have spurred interested buyers to consider the many residential buildings emerging.
Residential property, 241 Fifth Avenue, developed by Victor Homes, is the latest example of the real-estate commotion in the area. The wait list for the property’s 46 condos grew to more than 500 during the sales period.
During the first two months of the building’s launch, 50 percent of the units were in contract. Ninety percent of the units were in contract by the six month mark.
The 20th floor penthouse commanded $10 million at $2,600 per square foot, while the building average reached $2,000 per square foot.
Mr. Osher concedes that although the 241 Fifth location does not offer much in the way of surprise, the property offers all the amenities luxury consumers have come to expect.
A 24/7 concierge, rooftop terrace, fitness center, yoga room, and private treatment room can be accessed by guests.
One Museum Mile up the street also enjoys tremendous interest from prospective buyers due to the property’s proximity to Central Park and luxury retailers.
“We used a lot of different marketing initiatives to position the building as part of One Museum Mile, one of the most exciting condo projects in that neighborhood, to really show the buyers that the amenities extended beyond the building itself,” Mr. Osher said.
Bend the trend
The New York luxury real estate market has been abuzz with surging numbers posted left and right, but will the trend continue?
Although the overall number of apartment sales rose 26.8 percent to 3,297 in the fourth quarter of 2013, the median sales price of the entire market has not caught up to the 2008 peak. Also, a wave of new variables such as new qualified mortgage rules and potentially rising interest rates could clamp what would be another year of double digit growth.
Luxury real estate prices remained relatively flat in 2013, but demand continues to climb in the world’s major markets, according to a report by Christie’s International Real Estate.
The luxury units sold in London rose 937 to 5,693 in 2013, while the units sold in New York rose 709 to 4, 721 in 2013. Although selling prices have not surpassed any records, asking prices are at all-time highs, indicating that brokers expect that enough ultra-affluent buyers are prowling the market.
“In a market which is a seller’s market, where there is no inventory, it’s easy to sell a building overnight,” Mr. Osher said.