What are buyers of "luxury" developments thinking?

I can just add a few things. You never know what someone is thinking & a fool & his money are soon parted. That said, there is a lot of money out there & perhaps they just really like the building. When it's time to sell, never give a sucker an even break.

OP I think they will be just fine in 2012. How many peopl have thought buyers of real estate throughout history morons for over paying? Yet those morons always seem to be laughing their way to the bank.

New construction is all about profit. They make the greatest profit by using the cheapest materials possible while trying to make it look high-end. Don't fall for it. Buy prewar, get decent sized rooms and renovate to your own taste.

New construction is not cheap. That is a major generalization. Yes, some of them are shoddy, but the majority are solid. Developers cannot get away with building crap. Information during in the internet age travels fast so one bad job and they will be out of business. Buying an old coop means dealing with a board, you don;t own the unit, and, repairs and renovations will be right around the corner.