Condos Gaining Popularity over Co-ops in Manhattan’s Luxury Market

 

Condos pic
Condos
Image: castellanre.com

A respected presence in the Manhattan real estate sphere, Castellan Real Estate Partners pursues opportunistic, value-driven acquisitions and development opportunities. Castellan Real Estate Partners has experience in a wide range of residential building types, from condominiums to co-ops.

A recent Mansion Global article pointed to a shift away from co-ops when acquiring residences in the Manhattan luxury real estate sphere. A growing percentage of high-end buyers are willing to pay a premium for the opportunity to purchase condos, which are typically newer additions in a competitive market. In addition, the ownership structure of condominiums is more flexible and allows prospective owners the chance to bypass “picky” co-op boards.

This shift toward condos is reflected in substantial price differences, with Manhattan co-ops commanding an average price per square foot of $999 in the last quarter of 2016. By contrast, condos deliver an average per-square-foot price of $1,749, with new developments attaining an average price of $2,791 per square foot. The result of these trends is that a number of co-ops are relaxing restrictions in ways that allow them to attract a broader segment of buyers.

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