Despite an overall unremarkable performance in New York City's residential real estate market this year, the highest tier of luxury housing has hit almost unparalleled levels. According to a report compiled by broker Donna Olshan, the market for properties listed at $10 million and above—referred to as the "trophy market"—experienced its second-most successful year to date. As per Crain's New York, a striking 278 contracts were signed within this segment, strongly reflecting the prevailing economic divide where "the rich get richer and everybody else doesn't do as well."
More expansive still, the city saw over $11 billion in contracts at the $4 million and above range—an 8.5% uptick from the previous year. A total of 1,295 contracts were inked in this category alone throughout 2024. The average asking price for condos fell to just over the mark of $3,000 per square foot, surpassing previous records. Nevertheless, this growth was not evenly spread. "One big problem is that the huge gap between condos and co-ops continues to grow," Olshan emphasized, noting that in the $4 million-plus category, condos far outsold co-ops with a tally of "879 to 265," as reported by Crain's New York.
New constructions have largely fueled this surge in the luxury sector. "That number was completely fueled by new-development sales," Olshan remarked, indicating a strong consumer shift toward brand-new infrastructures featuring modern amenities, Crain's New York reports. However, the flip side of this trend is that co-ops are steadily losing market share, and the momentum in townhouse sales has remained unchanged. The year's top 10 sales list compiled by Olshan doesn't include a single co-op, and only two townhouses made the cut above the $10 million mark.
Some record-breaking transactions this year illustrate the financial might behind these acquisitions. For instance, a townhouse at 138 W. 11th Street set a new benchmark with a $72.5 million sale price, marking the highest ever paid for a townhouse in downtown New York. This 11,000 square foot property is a merger of two detached houses and was tied to Dexter Goei, the former CEO of Altice USA, as reported by the Wall Street Journal. Likewise, the pinnacle of this year's sales came in at $135 million for an unfinished penthouse in the Aman New York, acquired by a buyer who just happens to be OKO Group's owner, the building's developer, according to Crain's New York.
On a similar note, two units in 220 Central Park South went for a combined $81.5 million, equating to an unparalleled $13,700 per square foot—the most expensive of the lot. This represents a 30% increase in comparison to what their seller paid just four years prior, as highlighted by Bloomberg. This year's high-profile deals confirm that while the general market may waver, the appetite for ultra-luxury living spaces in New York continues to not only persist but thrive among the city's wealthiest.
