It once seemed as if prices on superluxury apartments had nowhere to go but up in a stretch of Midtown Manhattan known as Billionaire’s Row. But with at least six towers on the market or under development on and around West 57th Street, there are signs that prices are coming under pressure as the supply of expensive condominiums increases. At One57, the first of the new slender towers to open with picture-window views of Central Park, a four-bedroom condo bought by a European investor for $20.3 million in April is about to sell for a loss of more than $1 million. “For sure we weren’t able to sell it for what he bought it for,” said James C. Cox Jr., a broker with Compass who along with colleague Frank Giordano had listed the sprawling condo, which features a 43-foot-long glass-walled grand salon. Mr. Cox said the apartment attracted little interest when it was listed at $21.9 million in May by another brokerage firm, because of competition from developer Extell Development Co. and other owners.
Now with the apartment owner rushing to sell the apartment before he closes his books on 2015, Mr. Cox said the owner accepted a deal below the current asking price of $18.995 million. The deal is set to close in the next few days. “Just because you buy a piece of New York real estate doesn’t mean you have a God-given promise to make a profit,” said Donna Olshan a broker who tracks the luxury market. “There is plenty of competition and more new projects are coming on the market.” A spokeswoman for Extell said the company wouldn’t comment on a resale transaction, but said Extell was comfortable with the pace of sales in the building and had confidence in the high-end market. One57, the 1,004-foot-high tower with a curved top visible across Central Park and in much of Midtown, rang up strong sales when it went on the market in 2011, just as the condo market was showing early signs of recovery after the financial crisis. It raised prices 11 times, according to state filings, for an 19% increase in the total asking price to $2.39 billion. Now, Extell is still listing its final units available, along with nine listings by other purchasers ranging in price from $32.5 million to just under $5 million, according to real estate website streeteasy.com. Most sellers are asking for millions of dollars more than they paid, but a condo on the 62nd floor that cost $31.7 million is now listed at just under $30 million after being offered for as much as $38.9 million last year. Write to Josh Barbanel at josh.barbanel@wsj.com This article originally appeared on The Wall Street Journal.