Ultra-Luxury Real Estate In New York Has Cooled

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July 13, 2016

While riding an elevator to the top of some of New York City’s tallest residential buildings, the height at which you will see spectacular views isn’t the only thing that is rising. The price for these mountain top condominiums also rises, sometimes at a rate that seems like a million dollars a floor. It has become commonplace for the highest condos with the best views in desirable buildings to have $100 million price tags attached to them.

But the rush for the most luxurious of the luxurious condos with dizzying views, and equally dizzying price tags, has come to an end. A combination of stock market volatility, China’s restrictions on capital outflows, the Brexit decision, lower oil prices slowing the growth of wealth in the Middle East, and tax increases have all hurt the ultra-luxury market, both in New York, and around the world, The New York Times reports.

As the rush for these apartments slows, developers have had to adapt. 432 Park Avenue, the tallest residential tower in the Western Hemisphere, originally had full floor apartments listed for $78 to $85 million. However, those units have since been split in two and are now listed for about $40 million each.

Miami is seeing similar issues with selling homes and condos priced at at least $10 million. At the end of June, the Miami market had 216 homes and condos on the market that were priced at $10 million or higher, which marked a 43 percent increase from one year prior.

There are still buyers for these super-expensive luxurious abodes, but they are unwilling to continue to pay 2014 prices.

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