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Possible Bargain-hunting Opportunity for Manhattan Ultra-Luxury Apartment
The decreased sale trends of Manhattan ultra-luxury apartment may indicate a high bargain-hunting opportunity.
Based on the price, Manhattan apartment market can be divided into two levels. Apartment priced at $4 million or less, favored by most local buyers for residential purpose. Apartment priced at $6 million or higher, attracting billionaires from all over the world for investment.
Last year, the entire Manhattan Real Estate Market was driven by small and medium sized apartment market, especially one and two bedroom apartment with a price of less than $2 million.
In contrast, the second level market is showing a trend of price falling. On the one hand, large marketing inventories resulting in the choice of ultra-luxury apartments increased. On the other hand, buyers became more caution during the investment process with the uncertainty of global economy development.
According to Wealth-X, as of the end of 2015, Only 7,370 people hold assets of more than $500 million. Those are the individuals who can afford $20 million Manhattan Super-mansion.
On 57 St, there are more than 200 apartment units with a price above $10 million. Most of the units are provided by four property groups: One 57, 220 Central Park South, 252 East 57 Street, and 432 Park Avenue. In the second half of 2016, sale records of these apartments decreased.
Using one of the transaction as an example, the owner of One 57 unit 62A, bought the apartment with $31,670,000 in 2014 and prepared to sell it when marketing price goes higher. However, after listed the unit around one year and a half, with the flatten market, the owner finally choose to sold the unit in $23,500,000, which made him lose more than $8 million.