In an abrupt about-face, Manhattan luxury real estate, always thought to be immune to the current housing slump, is showing signs of weakness. The latest figures for the second quarter (traditionally the hot spot of the year) show large drops in both volumes and prices

Manhattan Luxury Property

According to the Corcoran Group, one of Manhattan’s largest realtors, sales slumped 38% to a five-year-low. In an interview with the FT, Pamela Liebman, Corcoran’s chief exec, said:

Two years ago, you could throw up some brick, put in a kitchen and a bath, put a price on it, and you’d have a bidding war. That’s not the case any more. Buyers now feel that a property they want today could cost less tomorrow.

City records for this period indicate that apartments in prime Manhattan neighborhoods are selling for less than their purchase prices — a situation that seemed all but impossible just a year ago.

The New York Sun has compiled a long list of properties that have recently sold for less than the original purchase price, including: a unit at 80 John St., in the financial district, which sold for $590,000, much lower than the $720,000 selling price in January. An apartment on 515 West End Ave., on the Upper West Side, sold for $2.1 million — $50,000 less than its 2005 purchase price. Even TriBeCa, “the wealthiest ZIP code in America,” is not immune. A three-bedroom condominium at 166 Duane St. is on the market for $4.495 million, well below the $4.7 million paid as recently as April.

Much like the city of London, which has also seen the first price drop in London luxury real estate in five years, the Manhattan luxury real estate market is fueled by bonuses from Wall street, which look like being a little thin on the ground this year.

As usual, the analysts are make a big fuss over rising median prices, which means the only stock moving is the very high end. Sooner or later, sellers needed to be realistic about prices asked, and this seems to be happening now.

Corcoran Group Q2 report (PDF download)
The Financial Times
The New York Sun

Ariel East, Extell Development Company’s luxury condominium on the Upper West Side, has just begun daily breakfast service delivered directly to residents’ homes.

Ariel East residents enjoy daily continental breakfast delivered to their front door from 7am to 10am on weekdays and from 8am to 11am on weekends. Ordering is simple; residents fill out an order form with their requests the night before and leave it with the concierge. Delicious choices include croissants, muffins and bagels; an assortment of Starbucks coffee; herbal and specialty teas; and a selection of fresh fruit juices. Penmark Realty Corp, which manages this high-rise residence at 2628 Broadway, will provide this daily service.

The elegantly modern Ariel East, designed by Cetra/Ruddy Architects, incorporates the luxurious materials, majestic layouts and gracious interior detailing found in the Upper West Side neighborhoods pre-war buildings, with the views and modern technology that today’s family desires.

Bringing a new dimension in design to the Upper West Side Ariel offers a new standard in classic two to five bedroom residences. Homes offer generous ceiling heights, hardwood flooring throughout, a choice of three finely appointed kitchens, luxurious marble master baths and expansive floor to ceiling windows to frame awe inspiring views of Central Park and The Hudson River.

In addition to the daily continental breakfast service, Ariel East features an unmatched repertoire of amenities including fitness by La Palestra, a full size four lane swimming pool, billiards parlor, screening room, pet spa and private gardens, providing something for each member of the family.