Marginalization of Manhattan.

Did you never notice the apartments over the ends of the GWB? Welcome to New York! Space is space.

I think as long as there is a nearby Whole Foods, it's all fine. What more do you need in a neighborhood these days? Ultimately ever since they let Big Purple take over more and more prime Greenwich Village, these fringe areas are necessary.

I do not understand the connection between your title, and the comment. The fact that people are willing to live in public transportation challenged areas of Manhattan does not seem like "marginalization." One of the things that has always mystified me about NYC real estate is that living in a marginal area does not seem to get a commensurate price discount, which has become even more apparent by the explosion of Brooklyn prices.

Take a look at 520 West 28th Street: I'm still shocked that anyone would pay $50 million for an apartment on a former streetwalker stroll across the street from the Elliot-Chelsea projects.
http://www.crainsnewyork.com/article/20161003/ENTERTAINMENT/161009986/documentary-shows-two-worlds-colliding-on-a-west-chelsea-corner-where-the-elite-for-profit-private-school-avenues-sits-next-to-the-affordable-housing-projects-the-elliott-chelsea-homes

" living in a marginal area does not seem to get a commensurate price discount"
That tends to be the case in "up" markets in NYC, but not in "down" markets. In "down" markets it has been the other way around (i.e. overcompensation).

There are developments on top of train tracks - that's truly on the wrong side of the tracks. There are developments next to the projects. Next to power and sanitation facilities. It used to be that developments for the past 20 years further west than the Lincoln Center subsidized development were bad. Or the Met Life Housing. Soli built some new buildings in former no mans land.

Hoodia,

Development of marginal areas is a natural part of growth of any city. Before the hudson river park got developed, no one wanted to live that far West without a large discount. I still remember the days of transvestite hookers close to Florent diner and an area called Lover's Lane in West Village/Chelsea waterfront. One of my former colleagues bought a 4000 sq ft loft for sub $100 per sq ft back in the late 80s.

Basically, people traded view and water for proximity to the subways (and in many cases away from stuffy coops where they could not get in despite being able to afford it) and the areas got gentrified or are getting gentrified. Fresh Direct, Amazon and Uber continue to help these areas.

People are hesitant to buy "at the end of the Earth." I remember when it was very difficult to sell at London Terrace because of the location. Then Chelsea Piers opened and since there was something further West it wasn't "the end" anymore and people had no problem with the location. If you told people 20 years ago that there would be a $50 million condo on 28th St and 10th Ave.......

https://www.bisnow.com/new-york/news/commercial-real-estate/lois-weiss-hudson-yards-transit-72573

30, Not any more given the waterfront sales in Tribeca and West Village - "People are hesitant to buy "at the end of the Earth.""

I disagree: up until fairly recently those waterfront projects in the Way West Village were very hard to sell..... until the piers got renovated - so same thing.

Everyone has their own likes/dislikes. Personally I like to be in the heart of an area. Walk to everything/close to trains. Never understood the allure of the towers in the W 60's by Riverside. But some people can't wait for "mini cities" such as Hudson Yards. My grandmother used to say "beauty is what pleases you"

Any location in Manhattan which is less than 0.5 miles to a subway which hasn't already gentrified will see above average price appreciation for the next 10-20 years. Think some parts of FiDi, LES, Two Bridges, etc.

tony, What if the prime location property prices are not increasing? How do you justify your statement without having a view on the general market prices?

Those are exactly the locations which well get obliterated if we have a market correction. Example: http://streeteasy.com/building/265-east-houston-street-new_york

After th market correction in the early 1990's this apartment got foreclosed on and I sold it for $130,000: http://streeteasy.com/sale/1240038 (and the one directly above it as well).

One Manhattan Square.

I think the closeness to the subways is overrated these days. Note all the bike paths, especially the dedicated bike roads on the west side, it's stunning and so convenient these days with Citibike. Another factor why the far west side of Manhattan is getting so developed now.