August 11, 2016
The high-end condo market, once a hot one in and around Manhattan, is showing signs of a slowdown. Prices for multi-million-dollar condominiums are dropping, while developers are thinking twice before putting up another luxury residential building.
The reason for the fall in prices is a glut of properties, which is pushing down resale value for the higher-end homes. As such, development is slowing down as developers hold off on plans, or abandon them. For example, developers who were going to convert the Sony Building into luxury condos opted to sell the tower for $1.4 billion instead.
The slowdown in the market is also making it more difficult to obtain financing to build condominiums and luxury multifamily projects.
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