With New York Real Estate, Just $10 Million Starts to Sound Reasonable

Talking about the excesses of the New York real estate market can be like marveling over summer weather in Phoenix: The exceptional is so routine that you easily start to sound tedious recounting or obsessing over it. “On Thursday it was a bone-dry 108 degrees — as it was on Monday, Tuesday and Wednesday. This morning, a deal closed on a $30 million glass high-rise penthouse in Midtown Manhattan. Similar deals were cut three more times before lunch.” Of course $30 million is a fantastical number, arbitrarily deployed as rhetorical device — an enormous penthouse in a new glass high-rise on or around 57th Street would change hands for two or three times that, as we have all repeatedly been made aware.

The conventional wisdom holds that the market for these properties, even as it has slowed in recent months in part because of expanded inventory, is distinctly separate from the rest of the luxury arcade in the city, which belongs to people who actually live here. Realtors see little correlation between what might happen in a building like 432 Park Avenue, the 1,396-foot-high attenuated middle finger, and what might happen on East 74th Street, in a sense because the investment banker who grew up in Connecticut and went to Princeton wants to live near the venture capitalist who grew up in Westchester and went to Yale, not next to the 26-year-old D.J. who is the nephew of a Taiwanese land speculator and is around for 73 days of the year.

Read More..http://www.nytimes.com/2015/04/12/nyregion/with-new-york-real-estate-just-10-million-starts-to-sound-reasonable.html

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