Manhattan luxury real estate is seeing fewer signed contracts for new development properties, particularly for high-end sponsor units. Over the last four weeks, buyers have signed just 12 contracts for properties asking $4 million or more. This marks a significant drop-off from the decade average of 28 for the same period, according to a report from Olshan Realty.
Inventory shortage drags down activity
The decline is driven by a shrinking inventory of new construction. Appraiser Jonathan Miller reported a 62 percent decrease in new development inventory over the last year, which limits the pool of available luxury homes.
This reduction in supply naturally restricts the number of transactions that can occur. When the pipeline dries up, even buyers with high budgets find fewer options to choose from, which suppresses the volume of signed contracts. This dynamic creates a tension between the scarcity of new units and the persistent demand for prime real estate in the city.
Top sales drive activity
Despite the recent dip, activity remains visible. Manhattan’s luxury market still secured 27 signed deals for homes asking $4 million or more between July 13 and July 19. The total was a slight decrease from the 29 deals inked in the previous period.
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The priciest home to enter contract was a penthouse at 73 Wooster Street in Soho. With an asking price of $27 million, the duplex sold in an off-market deal. Listing agents for the property were from Douglas Elliman.
Unit PHA spans 4,900 square feet and features three bedrooms and three bathrooms. The interior includes a gas fireplace, 15-foot ceilings, and a rooftop terrace with a swimming pool.
The second most expensive property to find a buyer was a condo at One High Line in West Chelsea. The apartment, Unit West 26D, asks $14.6 million and spans 3,800 square feet. It has four bedrooms and four bathrooms, along with floor-to-ceiling windows and Hudson River views.
This two-tower project was purchased from a $1 billion foreclosure in 2021 by Witkoff Group and Access Industries. The amenities for residents include a fitness center, lap pool, golf simulator, and garage, along with access to services at the attached Faena Hotel.
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The final penthouse at 500 West 18th Street also found a buyer last month at roughly $27 million. Unit West PH35B is one of 12 penthouses at the project. Of the first 10 penthouses to close, they averaged $4,800 per square foot.
A team with Corcoran Sunshine, led by Steve Gold, heads sales for the development. The project surpassed $1 billion in sales last year, eight years after it first began marketing.
Price breakdown and market trends
Of the 27 homes to enter contract, 17 were condos, five were co-ops, and five were townhouses. The properties were priced at a combined $205 million, resulting in an average of $7.6 million and a median of $6.3 million.
The typical home was on the market for more than a year and was sold at a 7 percent discount.