Implode-o-Meter News - NYC's Upper East Side Luxury Co-Op Market Swan-Dives Amidst Fading Glory

... in July -- after three years on the market and several price reductions -- the [Ganek's] luxurious apartment sold for a muted $25.3 million. Though nearly a $6 million profit, the home still sold at a 43 percent discount from its original asking price... In July, a co-op at 765 Park sold for $19 million, a $7 million discount from what it was first asking in January. In the same month, a full-floor co-op at the Sherry Netherland building at 781 Fifth Avenue had $3 million knocked off its price; it's now on the market asking $32 million...
The prime Upper East Side neighborhood -- which stretches north from East 59th to East 96th streets, and from Fifth Avenue east over to Lexington Avenue -- had long been considered the most prestigious place to live in New York City. In the days before Billionaires' Row, a grand prewar co-op on one of the neighborhood's avenues was the ultimate trophy property.
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But with new development condominiums springing up all over the city, the Upper East Side's pricey co-ops are facing stiff competition.
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To get a better idea of how the luxury co-op market has been impacted, The Real Deal looked at sales that closed at $5 million and above within the first six months of each of the last six years. While the number of co-op sales peaked in the first half of 2014, and remained steady in the first half of 2017 -- hovering between 50 and 60 -- dollar volume plummeted 33 percent, from $900 million to $600 million over the same period.
"Everybody wants Downtown, they want condo ownership, and they want contemporary living ... it's a perfect storm," said Stribling & Associates broker Kirk Henckels, who has worked on the Upper East Side for 35 years. "This is a seismic shift in residential preference. This is not a trend."
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"They want the Tribeca trophy properties if they are spending the megabucks," said Triplemint's Tyler Whitman. "It's hard to get someone to spend $3,000 or $4,000 per foot on the Upper East Side." Douglas Elliman's Richard Steinberg echoed that sentiment. "Right now, most people want light, bright and a lot of glass -- you don't get that on the Upper East Side," he said.

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NYC's Upper East Side Luxury Co-Op Market Swan-Dives Amidst Fading Glory