Manhattan’s most expensive—and most luxurious—homes will continue to attract the world’s ultra wealthy, though buyers are becoming ever more discerning in their search for the best location and amenities, according to a report from Knight Frank on Wednesday.
Global political instability and the potential weakening of the U.S. dollar will keep the world’s wealthy looking to reliable places for real estate investment, including New York City’s super-prime housing market, which Knight Frank defines as homes sold at $10 million or more. The caveat: More developers chasing after a limited set of buyers has resulted in a battle over amenities in an already rarefied market, according to the report.
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"The trophy property has become a new market category that does not follow the rules and dynamics of the overall marketplace," said Jonathan Miller, president of Miller Samuel, which teamed up with Knight Frank and Douglas Elliman on the report.
"It is not only the list prices that are defining these record sales; the rarity of location, expanse of the views, quality of amenities, and the sheer size of these unique homes have all played an important part in attracting the interest of foreign buyers," he said in the report.
A wave of international buyers flooded New York’s super-prime market in the wake of the financial crisis of 2008, turning massive condos overlooking Central Park and the Hudson River into a "new world currency," according to the report.
The next wave of super-luxury towers to launch through 2020 will be located in the same neighborhoods that have attracted the top 1% in the past, including Billionaire’s Row on West 57th Street and along Central Park South.
For example, two superlative condominiums, Central Park Tower, which will take the crown as the city’s tallest residential building with an average apartment cost of $22 million, and 220 Central Park South, by starchitect Robert A.M. Stern, are under construction.
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Other luxury towers are slated for downtown near the Hudson River and in West Chelsea’s gallery district.
Andrew Wachtfogel, Douglas Elliman’s senior vice president of research and analytics, said ultra-high net worth buyers have been particularly drawn to five-star hotel/condo properties (like 30 Park Place) and the privacy of off-street building access through driveways and porte-cocheres.
Discerning buyers require "robust amenity packages including swimming pools within a suite of health and wellness features, and private outdoor space with views," Mr. Wachtfogel added.