Are people still buying apartments needing reno?

I can think of few possible reasons:
1. Some people may prefer older buildings (pre-wars etc.) that often offer more attractive architectural features, higher ceilings and/or better layouts
2. Older buildings are often better located which some buyers prioritize
3. Some buyers may think bottom has not been reached on price levels for new construction
4. Some buyers may want to customize their new homes which is more difficult to justify in new construction

Makes sense for coops. But I think condos needing gut Reno are toast. I am seeing huge prices cuts in condos in poor condition.

300, what is the price difference between new and older condos that are identical in all other respects?

Min $500 per sq ft between needing gut Reno and newly high end renovated. It really should be $550-600 in my opinion in the current market. Labor costs are currently very high due to new construction boom and finishes are not on sale as much.

I was asking the difference between a unit in a newly constructed building and a unit in an older building in need of renovation, all other considerations such as location, exterior architecture, ceiling heights, etc. being equal.

I think your analysis may be correct but that it would depend on how high-end the location and overall price point.

Ximon, There are very few newly constructed building with the same exterior and windows/light as the old ones. There a huge range of price in the newly constructed building in the same location and views. However, if I were to take low end of new construction and take an apartment with not so great light and compare it to something close but old, it is $700-$1000 per sq ft (under $1k for old and $1800ish for new).

For example this one. Not going to sell at this price. May be 25% lower. Combo does not work either.

https://streeteasy.com/building/the-cosmopolitan/28cd?email=true&utm_campaign=folders_user_updates_pm&utm_medium=email&utm_source=triggered

Lots of new construction is shoddy with tacky, trendy finishes that look dated immediately. Paper-thin walls and floors/ceilings. Bland, cookie-cutter layouts.

Fully-renovated older apartments (prewar, etc) only really have value if the work and finishes are classic. I've seen gorgeous prewar apartments completely ruined by an overload of 'design' that often doesn't even fit the character of the space. It's a rare buyer who will want to spend a premium on someone else's 'taste' (or lack thereof).

Personally I would always prefer a vintage wreck with beautiful bones over a modern, fully-done bore.

That was kinda what I was getting at. So buying at a $500 discount to new condition and then gut renovating to one's personal taste, many buyers may still feel its a better deal than buying in a new building. Again, all other things being reasonably equal which I know is rare.

Yes, Squid. It's a fine line between updating a pre-war "just enough" and going too far. That is what I am working on now and hope my reno will have a good balance between pre-war "bones" and modern conveniences. But every buyer is different so there is no such thing as "one size fits all" and we have to accept that not everyone will like the work done. The goal should be to limit the work done so that it enhances value in the eyes of most buyers though not all. Tricky stuff.

yes 300. The Cosmopolitan looks like a real money pit similar to the building near the 59th Street Bridge we discussed a few weeks ago. Might be the sign this market is fully priced when people pay premiums for such units thinking they are getting a discount.

ximon--yes for sure nothing is one-size-fits all. We too are embarking on a gut reno and are doing a classic look (with modern updates of course) because that is what we actually prefer. But there are of course people who prefer everything to be ultra-sleek or over-the-top in some other way. Since we are not planning on selling any time soon we are not as immediately concerned about resale value BUT it is certainly always in the back of my mind as decisions are made.

Squid, appreciate posting some examples of new construction you do not like. Thank you.

Ximon, Where do your think nice high-end (not ultra) reno costs are running including carry?

300, not sure of market costs but my reno was pretty high end with a new kitchen, new bath, new washer-dryer closet and two new bedroom closets. All gut reno. All high-end appliance brands and fixtures although not top of the lines. Cost will be around $150,000. Add to that some new flooring to patch where I cut plus skim coating and painting and I guess I am all in at around $200 psf not including carry since I lived there most of the time but I guess that would be another 12 months @ $4,500 per month. So that totals around $250 psf. Sounds cheap I know but I spent very little on architectural and design. I hope to sell for maybe $400 psf over what comparable unrenovated units are getting so not much profit but I feel certain it will sell much more quickly. If market had kept going up, I would have made a very good profit but I think I still made the right decision to go ahead and renovate.

Sounds very nice. I guess all new flooring would have added another $30 per sq ft and architect another $35-40 per sq ft. Where did you get the kitchen cabinets? Central ac or PTAC replacement? How many baths? Would love to see a link to the pictures if it is possible.

Cabinets are Innermost from Home Depot, pretty high end for HD. No a/c improvements. Only 1 bath. Could have added a new ensuite bath but chose the new closets and w/d instead. Can't have everything that everybody might want but I think that was good a compromise. Also doubled the size of my kitchen and opened it to living area. I designed kitchen so that it could be walled back in if a buyer wants it more traditional.

Nice. Open kitchen makes a huge difference.