Is a global economic slowdown coming? There are predictions of lean days coming, but the reality is that no one knows what the future holds.
Some observers of the New York City condominium market say that global economic uncertainty is softening the local luxury condo market. After all, those luxe condos are really part of a global market.
If you can afford a top-of-the-line Manhattan condominium, it's very possible that you are shopping other U.S. cities and even overseas as well. Bisnow reports that Miami's ultra-luxury sector is slowing down, causing some developers to cancel projects. London is also experiencing a slowdown, with a drop in prices for ultra-luxury footage; a drop accompanied by falling prices in the worlds of high-end art and classic cars. too.
One bit of evidence cited that points to a local slowdown is One57. Twenty of its 94 units remain unsold. Developer Extell Development has marked down the sellout value of the 1,004-foot tower from optimistic 2013 projections.
Of course, the gloomy outlook is not universally shared. Developer Michael Shvo has $4.3 billion in high-end units in the pipeline. According to the Wall Street Journal, Shvo believes that rather than a glut of ultra-luxury condos, there's "an undersupply of great product in great locations."
Is negotiating leverage shifting to potential condo buyers in a bear market? Perhaps. Regardless, it makes sense for buyers and sellers of New York City condos both to have an attorney experienced in real estate matters negotiate or review transaction contracts.