340 West 57th Street, #2B

So I am trying to make sense of this listing at the Parc Vendome. Another large one-bedroom that has been sitting on the market for over a year. A few months ago, I posted about 8I with same exact layout which was on the market at $1,850,000 or $1,546 psf for a total of16 months before being pulled maybe a month ago. That price seemed aspirational to many, myself included.

This unit 2B sold for $1,325,000 in March 2015, then renovated with new floors and completely new bathroom. Its now on the market for $1,675,000. Is this also an aspirational price? Assuming owner spent $100,000 on the reno, the listing price reflects only a 4% compounded rate of appreciation over the last 3 years. That sounds reasonable to me. Also, listing price of $1,400 psf seem equally reasonable. And yet it still sits on the market. I like the unit in part because its on the end of the building so it has a side window which could allow for an extra legal bedroom.

What gives?

The SE condo index for Manhattan has prices pretty flat over the last few years, and only about 1%/yr over 2008. And while the renovation is tasteful, it is lacking a Liebherr refrigerator which gives it questionable market appeal.

Yes, Chasing. The kitchen was not really touched in the renovation and should have been expanded by taking over a bedroom closet. I wonder if owner thought they could make a quick buck by flipping but the market turned on them, which is another way of saying that they overpaid in 2015. Maybe a lot of people did.

>>And while the renovation is tasteful, it is lacking a Liebherr refrigerator which gives it questionable market appeal.<<

I never fully understand this argument. As a buyer, I was never interested in someone else's high-end kitchen appliances as I generally prefer to purchase new appliances rather than keep a previous owner's used Wolf, Viking or Sub-Zero...

Ximon, This type of apartment needs a unique buyer due to large space but only 1 bathroom even if second bedroom is possible. Hence, can not read too much into the market using this example. Some people looking for a large space like this may like open kitchen.

Yes, 300. I think I agree. The PV attracts a certain buyer for these large one-bedroom units and need to be very high end to attract those types. Not so true for the more affordable and smaller one bedrooms and of course the studios. May need to stay away from these over-sized apartments especially if market gets worse. $1,675,000 for a one-bedroom in a pre-war building is a very big number.

Second floor facing 57th Street over a pet store?

Yes, 30. Those are negatives too. Maybe market exuberance today is less irrational than three years ago?

Overpriced property - irrational exuberance = ???

In the current market = no sale
In a normal market = fair price

There is a reason why many people sit on the sidelines in markets like we have now.