For years, condos have been more desirable than co-ops to New York City apartment buyers. At the high end of the market, according to a new report from the brokerage Stribling & Associates, condos are stumbling and co-ops are enjoying an unlikely resurgence.
Stribling’s Mid-Year 2018 Luxury Report, which covers apartments priced above $5 million in Manhattan and Brooklyn, states that condos saw a whopping 39 percent decrease in the number of sales from one year ago – the first time in the past six years that condo sales declined. Meanwhile, co-op sales rose by 10 percent from a year ago – after recording yearly declines in both 2016 and 2017.
Garrett Derderian, director of data and reporting at Stribling, explains to PRNewswire why co-ops have experienced this sudden uptick in sales: "Over the past several years, buyers' predilections shifted towards downtown new-development condos. As a result, uptown co-op prices became considerably softer since sellers have been adjusting expectations. Now, with a flood of costly new construction condos on the market, there is a perception those prices are overinflated. Co-ops, which have already adjusted their prices, have become more attractive and oftentimes offer more space for the same dollar amount."
The report also highlights that while the downtown Manhattan continues to be a top choice for condo buyers, with 52 percent of all deals, the Brooklyn market is also attracting well-heeled purchasers. For co-ops, the Upper East Side remained the most active market, with 54 percent of all co-op sales taking place there. Derderian attributes the growth to both the renewed interest in uptown markets, as well as the capacious size of apartments there.
Kirk Henckels, director of Stribling Private Brokerage, says the current luxury market is undergoing “the kindest, gentlest major price correction in memory.”
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