With inventory declining and prices rising, the appetite for Manhattan’s luxury real estate appears to know no limits. Last week (October 9 to 15) was the strongest second full week of October ever for contracts signed in Manhattan. Sales for contracts signed over $5M rose by two over the previous week’s groundbreaking figures. Three contracts topped $20 million which tied the week as the second-best of 2021 so far.
In total 291 contracts were signed last week which is down 10% from the previous week but still up by a mighty 79% year-over-year. In total sales have risen on yearly basis for 54 consecutive weeks which makes a cumulative annual increase of 106%.
The Upper East Side’s Upper Hand
Digging deeper into the numbers, luxury condos accounted for almost 10% of the high-end sales. The most expensive sale last week, according to Mansion Global, was for two penthouses which will be combined at 150 East 78th St., a 25-unit building on the Upper East Side, designed by the ubiquitous Robert A.M. Stern. Combined, the penthouses were asking $32.75 million with the merged space clocking in at a roomy 7,288 square feet encompassing eight bedrooms, two terraces, and two fireplaces.
Not far away at 109 East 79th St., another penthouse asking $25.8 million — in a building to be completed in 2022 — went into contract. The spread spans 5,561 square feet with five bedrooms, a balcony, a library, and a terrace. Amenities include a golf simulator, game room, and spa as well as a squash court that doubles as a basketball court.
Brooklyn Sales 4x From A Year Ago
In Brooklyn, as reported by Mansion Global, luxury home sales have quadrupled from a year ago with townhouses and new development condos making up the top 10%. Last week’s sales saw the borough continue to charge into the holiday season with 131 contracts signed, up 11% compared to the previous week and 87% year-over-year. Last week marked the highest number of reported contracts signed since mid-August 2021 with both condo and co-op activity up by double digits week over week and year over year. Interestingly, contracts priced under $500K skyrocketed by 350% thanks mostly to co-op deals in Southern Brooklyn. Higher priced transactions between $1 and $2 million improved versus the previous week, doubling compared to the same week last year and there were 10 deals reported over $2 million. At the top of the market, the highest-priced home to go into contract was for a new development, three-bedroom condo at 18B Bridge Park Drive in Brooklyn Heights.
Other deals above $3 million included a three-bedroom condo (#6B) at the renovated landmarked 100 Amity Street in Cobble Hill which was listed for $4.150 million and #B515 at the sprawling Austin Nichols House, 184 Kent Avenue, in Williamsburg which was asking 3.85 million.
Home Grown Buyers Are Fueling The Spending Spree
What’s been interesting about sales in both Manhattan and Brooklyn is the relatively few foreign buyers fueling the market due to Covid restrictions. “International buyers accounted for only 11% of new development sales in the third quarter compared to 28% two years earlier,” Corcoran CEO, Pam Liebman told the Wall Street Journal. It all points to a continued sales surge when Covid restrictions eventually do lift in November and vaccinated foreigners are allowed back into the country and re-enter the real estate market. Get ready!