Cheap condo unit? What's the story here?

The condo-coop spread isn't so wide at the entry level. It's more apparent where people with money who can't get into a coop bid-up the price of comparable condos.

+1 on George’s point. There is a sour spot for dual income professionals where a certain profile property takes all their savings and disposable income at a valuation that seems criminal but is actually a testament to the market’s efficiency. I feel like each city has its number and property type with a value X that sucks everything out of the up-and-coming. In each city, if you can just pay 1.1X, you get so much more than you get for X. In NYC, it seems like 3 bedroom condos attract young families that could get so much more at a lower price but for coop financial requirements, which are patently absurd given the financial state/lack of desirability of so many of the coops.

I keep doing co-op deals, while condos from my perspective are moving slowly. So I *think*, of course inviting others' perspectives, that it's system-wide.

possible reasons could be:

Everyone is stretching for space -- and a 600-sf condo is generally smaller than a 600-sf co-op;

A sense that co-ops are tighter-knit communities, which is desired by people who are staying (this was one of the arguments in the WSJ co-op vs. condo piece that ran... about a week ago?)

and

A lack of international travel acting as a damper on foreign investors, who are a mainstay of the condo market.

ali r.
upstairs realty

GG, Post a couple of coop comps in that location and low rise 60s brick building, if you have them.

3br condo is more than twice the price of a 3br coop in midtown east.

Just looked and maybe not quite twice the price. In our neighborhood I use 310 E53rd for condo comps; we rented in that building and loved it, but when we decided to buy, price differential with surrounding coops compelled us to coop, even in market for smaller units. Our landlord offered to sell us unit we were renting (a 2/2.5) for 2.9 and we passed, thinking the unit was not even worth 2.5 to us personally.

When I first started Condos were probably 5% of the market. Now they're close to 50%.

Not a comment on coop vs condo - but this building is right by the homeless shelter for men. Huge problems

300, I don't have any low rise building in the same area in my mind. But now you mentioned, the price of coop unit in this area does seem to be more affordable. Maybe the shelter mentioned above plays a role.

GG, While I have not looked at the recent data, condos even at lower price point are more expensive than coops adjusting for other factors (tricky). Also, the interior condition of the apartments vary greatly - missing interior pictures say something. This area is generally cheaper than others. Building you know is at the low-end.

Here is somewhat of a comp with a little better location and probably better condition. Square footage is probably 625-650.
https://streeteasy.com/building/229-east-28-street-new_york/5a

300 thanks. very helpful. I was somewhat comparing it with coop in other areas.

It's the location. Not great.