Extravagance by the ultra-rich drives up New York luxury homes

(Bloomberg) — Despite a mediocre year for New York City’s overall housing market, ultra-luxury homes soared to near-unprecedented heights.

“This is the second-largest year on record when it comes to what I call the trophy market, the $10 million-plus market,” said broker Donna Olshan, who compiled the report on the city’s largest sales in 2024. he says. At least 278 contracts have been signed for prices above $10 million, she said. “Things look the same as they used to. The rich are getting richer, and everyone else is doing just as poorly.”

More broadly, more than $11 billion in contracts valued at $4 million or more were signed this year, an 8.5% increase over last year, Olshan said. In 2024, a total of 1,295 contracts were signed in this tier. The average asking price for condos in that category has also increased, reaching just over $3,000 per square foot, Olshan said. “This is the highest number we’ve ever had.”

This growth is driven by an increasingly dominant preference for new buildings. “Here’s the story: This number was driven entirely by new development sales,” Olshan says. “People are looking for new things. They want the freedom of ownership that condos offer, new infrastructure and amenities, and that’s where they’re headed.”

The downside to this is that co-ops continue to slowly lose market share, while townhouse sales remain flat, Olshan said. “One of the big issues is that the gap between condos and co-ops continues to widen,” she continued, referring to the $4 million and above category. “Condos outnumbered co-ops 879 to 265.”

There are no co-ops on Olshan’s top 10 list, and only two townhouses meet the criteria. Here are the most expensive sales in the city (note that more sales may end before the end of the year):

500 W. 18th St. East Penthouse 26: $45 million The backstory: The two-tower complex in Chelsea known as One High Line (formerly XI) includes this 7,375-square-foot apartment with views of the Hudson River. Some major sales have finally closed and downtown Manhattan. The apartment occupies an entire floor of the East Tower and has five bedrooms and six and a half bathrooms.

500 W. 18th St., West Penthouse 36: $47 million The back story: This penthouse is located in the West Tower of the One High Line development. These buildings were designed by architect Bjarke Ingels to look as if someone had taken a standard apartment tower and torqued it down from above, giving the impression that it had been caught mid-twist. The full-floor apartment measures just under 7,000 square feet and has six bedrooms and 7.5 bathrooms, according to listing documents.

4 E. 79th St.: $56 million The inside story: Arguably the biggest deal on this year’s deal list (over 15,000 square feet!), this massive 22-room townhouse is located steps from Central Park. Built in 1898, this massive 35-foot-wide home was recently renovated and features an elevator, outdoor space, high ceilings, and six bedrooms. The original asking price was $65 million, according to listing documents.

730 Fifth Ave., 24A: $61.6 million The backstory: The deal for Aman New York (the condos are in the same building as the Aman New York hotel) was announced in February, but the deal was made about six years ago. . The Real Deal added that the buyer is Hong Kong-based private equity executive Terence Chan. Measuring approximately 6,300 square feet, this apartment has four bedrooms and five bathrooms, as well as a library and necessary entertainment areas.

730 Fifth Ave., 23A: $64 million The inside story: This full-floor unit has actually sold twice this year. It first closed in March for about $50.6 million. And in July, The Real Deal reported that it had been sold, this time for a healthy $64 million profit. According to the floor plan, the apartment measures approximately 6,300 square feet and includes a private elevator lobby and home theater. Residents can enjoy Aman Hotel’s famous services.

138 W. 11th St.: $72.5 million The story behind it: The deal set a record for the price paid for a townhouse in downtown New York, according to The Real Deal. The approximately 11,000-square-foot, 45-foot-wide home is two adjoining homes combined into one. The Wall Street Journal reported that the seller is an entity linked to former Altice USA CEO Dexter Goei, who bought the company in 2016 for about $31 million.

520 Park Ave., Duplex Penthouse 63: $79 million Backstory: This duplex penthouse sits above a Robert AM Stern-designed condominium and covers approximately 8,310 square feet. According to the floor plan, it has a huge curving central staircase, as well as a sunroom and two terraces. Primary Bedroom Suite – One of the five bedrooms occupies almost half of the top floor. The initial asking price was $100 million, according to listing documents.

220 Central Park South, 18A AND 63: $81.5 million The back story: This is one sale, but two units with a total of four beds and five bathrooms. Their combined area is just under 6,000 square feet, according to listing materials. At more than $13,700 per square foot, it’s the most expensive property on this year’s list. These properties were about 30% more expensive than sellers paid in 2020, according to The Real Deal.

217 W. 57th St., 107: $117.4 million The story behind it: Another duplex penthouse, another stratospheric sale. The event took place near the top of the Central Park Tower. The tower’s approximately 12,550-square-foot, two-story unit features a stunning 65-foot-long living room (the “Grand Salon”) with double-height ceilings. There are a total of 15 units, including seven bedrooms and 10 bathrooms, according to listing documents.

730 Fifth Ave., 26A: The story behind the $135 million: Topping this year’s list is an apartment that isn’t even move-in ready yet. The apartments, which occupy the top five floors of Aman New York’s Crown, were delivered unfinished. The buyer, Vlad Doronin, was probably more understanding than others, considering he is the owner of OKO Group, the building’s developer.

See more articles like this at bloomberg.com