In New York, where more than 3,500 new luxury apartments are hitting the market this year, developers now have to work much harder for a sale. As a result, they are leaning on different sales tactics like offering limited price discounts, gift cards, parties for brokers or creating two units from one, to create momentum at their projects.
For example, in Soho at 10 Sullivan St., an 8,400-square-foot penthouse listed at $45 million was sliced into two smaller units. Neither has sold yet, and the pricier apartment got a $1 million cut to $28.5 million.
Or developers are postponing their plans altogether and delaying a marketing push. For example, at 111 W. 57th St., where a penthouse with direct Central Park views will be listed for $57 million, a formal sales effort won’t kick off for about a year, until the building reaches roughly 800 feet and can catch the eye of potential buyers.