New dev Manhattan discounts?

Can't say I'm seeing 10 to 15% and closing costs. At least not in the under 7 million dollar market in prime locations. Meaning not some far outpost south of the seaport...

We just signed a contract on a four bedroom three and a half bath, and got a pretty generous deal. Happy to discuss the details, but not here.

I'm not a big New Dev girl -- most people think of me as a co-op specialist -- but my recent buyer representation of clients in a Brooklyn purchase was 13% off list with sponsor also paying RETT.

Now the Brooklyn (and by "Brooklyn" I mean "Brownstone Brooklyn" -- Heights/BoCoCa/Downtown/Slope) submarket is an interesting one because most inventory flew in the last year and a half, and I think what we're seeing now is sponsors now reckoning with the inventory that's left and taking steps to move it.

UES/UWS dynamic is different, because up here (I live on the UWS) it was much less "hot" in the first place. As a result, I think developers are in a different place in their sales (dare I say capitulation?) cycle. In general, I'm going to agree with Keith and say I doubt you'll see 15% plus RETT. More specifically, I think one useful metric for your broker to look at is PPSF closed vs. PPSF asking in each individual building.

If you're not working with a broker, I'm happy to talk to you.

ali r.
{upstairs realty}

Ok thanks. Maybe its the $10M+ market that's seeing those bigger discounts, since they seems to be no shortage of those apparently.

I would think discount depends on how overpriced it was to start with in $ per sq ft and what percentage is unsold for the project. I am seeing some stuff in BK where people has to pay above ask in new development to get it (Keith obviously know more).

According to data firm Marketproof "Manhattan new developments offered a 10.3% discount on average in Q2."
https://nypost-com.cdn.ampproject.org/c/s/nypost.com/2021/09/28/central-park-tower-unit-sells-for-10m-off-its-original-ask/amp/

Thanks for the feedback, much appreciated. Seems as if the days of the 4000+ psf new condos (excluding 57th Street supertalls) are pretty much over. Given all the new taxes of luxury apartment purchases, a 10% discount for a new dev condo charging 2500-3000 psf in Manhattan, appears reasonable.

I'm just starting to look, will let you know what I find. thanks.

Well, I stand corrected - no surprise but the level of new dev discounts is highly correlated to location, to overstate the obvious. At the larger new condos that I'm looking at in prime UES and UWS, there seem to be few concessions or discounting. Where there are good discounts is areas like Hudson Yards, Financial District, parts of non-prime Tribeca/Nolita etc.

What were all those people saying about NYC being dead :-)

I'm hearing 7-8% these days

Another personal update: the market for new luxury condo developments in prime locations is mostly on fire based on visits to sales offices. By prime, I’m talking about UES, UWS, flatiron, Tribeca. Not a while discounting as far as I can tell. Even the days of 7-8% discounts for anything decent seems to be fading fast. Notable exception is billionaires row (they can’t give those away - too much supply, not enough buyers at those prices).

I also noticed many foreign buyers or agents represent foreign buyers on my tours - seems like Chinese or wealthy HK buyers fleeing HK

With bonus season looking bonkers insane this year, I underestimated how strong this market is. Need to recalibrate my expectations a bit...

I’ll try to buy something (i.e., new dev) in next 2 months personally before Wall St money comes flooding in Q1.

We have 2 new dev deals going on. One downtown, no discount or consessions, last of a desirable line, under $3mm. One ues we received moderate discount off ask, generous consessions (approx. $500k) $7mm home