Interesting price history ... also about a brand new completed luxury development by top developer - case study

These buyers are screwed - they paid $1,230,000 for 800 sq. feet. They will be lucky to get $900,000 for this apartment.

$1.2 or $1.4m for THIS:

http://img.streeteasy.com/nyc/image/32/3217232.gif

right...!

And it's in one of the crappiest neighborhoods around - very, very noisy.

900k? Some of you still have no concept of a bear market. Try 600k - if it ever sells..

> Some of you still have no concept of a bear market.

bingo.

Its like saying "wow, dow went from 14k to 10,500. ouch, that hurt... see all the panic in the streets"

Actually, $600,000 would be too high. That would give you monthly mortgage payments of $3,193.45, plus $1,000 a month in common charges and taxes, which are abated and will likely go up to $2,000 a month over the years.

Therefore, you'd be spending $5,000 a month for a tiny piece of pie in a bad neighborhood. You can rent a much bigger apartment in the same neighborhood for $3,195.

http://www.nybits.com/apartmentlistings/22ac61d8dcb18e01f85b18b867a0d852.html

In a really good building:

http://www.10east29.com/mainpage.html

and not risk losing all your principal.

Given the maintenance and tax of $2,000 a month, that property would have to fall to about $200,000 to equal what you can rent an equivalent (or better) apartment for.

There is where we are headed.

I always thought 240 Park seemed really overpriced to me....

Let's not get hyperbolic here Steve. 29th and 5th is not the same neighborhood as 20th and Park, and while you may consider a cookie-cutter postwar building around the corner from the Empire State Building "a really good building," it obviously does not compare to living at 240 Park. Your point is essentially accurate (if overstated) but it would be a lot stronger if you found a rental comp that was actually a comp.

That being said, this apartment is never going to sell for anywhere close to the current asking price, or anywhere close to the previous sale price. Things would have to get a lot worse for it to trade at 200k, but I would not be at all surprised if it traded at 400. This is why talk of a 70% decline in real estate prices is far from irrational: when you factor in common charges, that means you need huge price declines to equalize to rent.

Overpriced today, high priced when it was first listed.

But this is brand new construction at a great location by a top luxury developer with great finishes.

$600,000? Nuts

I think it is a great location. As for 29th and 5th, I know the church there quite well. I never really liked that immediate neighborhood one bit.

I did check out Madison Belvedere - might be a very decent building tho.

"29th and 5th is not the same neighborhood as 20th and Park"

Well I live on 21st & 6th so I'm pretty familiar with both places. Unfortunately there's a dearth of rentals in that particular area, but you can check out:

* $3,350 1-Bedroom at Park 23 (available December 1, 2008) posted 11/06/08.
* $3,650 1-Bedroom at Park 23 (available November 8, 2008) posted 11/04/08.

Which is across the street at 239 Park. Still you get an impossibly expensive apartment.

"Things would have to get a lot worse for it to trade at 200k, but I would not be at all surprised if it traded at 400."

I would agree with that only because at that price the property tax would fall to the point of equating market rents. I don't think we'll make that apartment at $200,000 either, but my point is that that's the direction we're headed.

decline continues

10/29/2008
Listed in StreetEasy by Halstead Property at $1,480,000
11/06/2008
Price decreased to $1,450,000
11/17/2008
Price decreased to $1,399,000
11/22/2008
Price decreased to $1,350,000

Unfortunately, looks like the seller is going to lose some serious coin.

so steve, now we're at 85% declines?

a cookie-cutter floor plan, no windowed kitchen or bath - unbelievable

Now finally

10/13/2006 Previously listed in StreetEasy by Elliman for $1,280,000
04/11/2008 Previous sale closed for $1,230,000
02/20/2009 Price decreased to $1,190,000

A sale is officially listed below 2006 new build prices, officially a loss at a prime location, top developer, high floor, always in-demand 1BR size.

Building came out a bit more grey than expected

1.19mm is still toooo high!!! down down down!!!

The question for the doomsdayers on prices on Manhattan: why is this thing still listed at 1.2mm if the market is really going to decline 30 to 40 to whatever percent?....(I hope the crash happens, but I just don't see it yet).

dropping 30-40k every couple weeks.. doesnt seem like best strategy

@jimstreeteasy "why is this thing still listed at 1.2mm if the market is really going to decline 30 to 40 percent?"

because the seller is not in touch with reality...

This RE is the poster child with all that went wrong with this town.
Watch as reality beats this child senseless.
If this thing moves it's going to be a $ that even at this moment seems inconcievable.
I only take joy in the fact that once the pain has passes this will be a more livable town albiet slightly more dirty.