While historically the New York market offered little room for negotiation to buyers in both old and new homes, the trend has slowed since 2019, with discounts of up to 5%, excluding neighborhoods or particularly sought-after products. Since the pandemic, the process has accelerated: sales are closing up to 15% below the posted price in the old segment and well above that in the new segment, at unprecedented discount levels!
The residential supply of new developments is overwhelming, with developers in a hurry to sell to meet regulatory constraints and financial deadlines. They can't wait for the trend to turn around, unlike individual sellers. The market is therefore particularly conducive to buyers, who today have access to new programs starting at €500,000 in Brooklyn and €700,000 in Manhattan.
Institutional investors and high net worth individuals are also seeing the opening of prestigious developments driven by luxury brands such as Waldorf Astoria, Aman Resorts or innovative cooperations, with Aston Martin for example.
New York is by nature a resilient market; analysts expect a return to previous conditions within 12 to 18 months. The current significant discounts could therefore translate into as much appreciation or capital gains in the short or medium term.
In this context, BARNES New York is organizing a series of webinars on the opportunities to be seized.
To register and send your questions in advance, please send an email to [email protected] indicating the language you would like to speak.
© BARNES New York - published on Barnes International Realty on 14/09/2020
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