Park Ave Place Can't Find It's Footing
A: The new development at 60 East 55th Street is on a roller coaster ride of asking prices with price reductions and price increases over the past few months. Where the ride will end nobody knows!
I'm not sure what the sales office sees in the market or sales trends data for this new development between Park & Madison, but what I do know is that prices keep jumping around as some units offer an 8% commission to the accompanying broker if a deal is brought to the table. The higher commission incentive is not new as Sellsius Real Estate blog reported weeks ago on a property that was offering a 10% commission to the brokers involved in the deal in an attempt to stimulate activity; not the best method though in my opinion as to get away with this the asking price almost certianly will be increased passing the higher brokerage incentive onto the buyer!
Moving onto the new development, besides the prime location here are some of the amenities being offered:
On-Site Core Club Amenities Include:
As for prices, here is an example of the ups-and-downs I was reffering to earlier in the post:
Apt: PH1 w/ 8% Commission (2300 sft 3BR/3.5BTH)
Original Asking Price ---> $5.1M on 5/2004
Raised To ----> $8.632M on 2/2005
Dropped To ---> $5.25M on 4/2005
Current Price Raised To ---> $6.1M on 10/2005
Apt: 15A w/ 4% Commission (900 sft 1BR)
Original Asking Price ---> $1.0M on 6/2005
Raised To ----> $1.360M on 10/2005
Dropped To ---> $1.295M on 6/2006
Current Price Raised To ---> $1.360M on 7/12/2006
Apt: 15B w/ 8% Commission (528 sft 1BR)
Original Asking Price ---> $800K on 8/2004
Current Price Raised To ----> $935K on 4/2005
Apt: 16D w/ 8% Commission (940 sft 1BR)
Original Asking Price ---> $1.375MM on 12/2004
Raised To ----> $2.068M on 2/2005
Dropped To ---> $1.425M on 4/2005
Current Price Dropped Again To ---> $1.25M on 4/2006
Just to name a few!!! See what I mean.
The way new developments market their properties is that the sales office releases a bunch of units at a time. For example, the first phase of pre-construction will consist of 12 total apartments; 4 1BR's, 4 2BR's, & 4 3BR's. Once all these sellout, the next phase of 12 units will be released at a higher price than the first phase; and so on until all units are sold. At least this was the way developers usually marketed their properties in the past. Now that the housing market is cooling, developers seem to be releasing more units at a time so as to give the buyer more choices to meet their own unique needs. Its certainly not the norm, but is happening more often than in the past.
I'f you do plan on buying a new development, be SURE TO READ MY POST ON 421 TAX ABATEMENT's and what that means for you!! Good Luck!