Ominous signs for luxury condo developments in the city
Recent activity in the condo market: Sales of all condos and co-ops fell 25 percent in the first quarter from a year earlier to 2,180. Newly constructed condos fared worse as they plummeted 54 percent to 259, according to a report from Douglas Elliman and Miller Samuel.
Be Smart: This explains what happened with the following three condo projects last week:
1. Triangle Assets shelved plans for their condo tower at 303-305 East 44th Street.
2. Chetrit Group + Assa Properties + Read Property Group withdrew plans to convert 108 rental units at 515 Ninth Avenue to condos.
3. Ian Bruce Eichner filed a lawsuit against his JV partners Fortress Investment Group + Dune Real Estate Partners as they threatened to abandon the project at 45 East 22nd Street.
Why it matters: Although the economy continues to soar, NYC homebuyers are concerned with rising borrowing costs and the negative effects of the Tax bill. As we discussed when the bill was signed into law, the State and Local Tax deduction is now capped at $10,000 and the Mortgage Interest deduction is now capped at $750,000. Let’s hope sellers become more realistic in pricing.