Luxury real estate affected by Covid-19

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A view of Billionaire’s Row (Photo by Gary Hershorn / Getty Images)

Covid-19 has dealt a blow to New York’s luxury real estate market which is worse than the 2008 financial crisis and the terrorist attacks of September 11.

The virus has entered a market that was already in turmoil, and industry professionals now say to encourage deals they may need to offer additional discounts that will drive prices down even further, according to the Wall Street Journal.

Manhattan home sales soared 56 percent year-over-year between March 23 and August 16; and for properties at $ 4 million or more, the drop was 67%, according to the Journal, citing data from UrbanDigs.

Luxury properties sold in the second quarter posted an 11% price drop, the Journal noted, citing Douglas Elliman. New listings were also down, by 21%, while new listings priced at $ 4 million and above fell about 35%, according to data from Elliman.

At its luxury condominium, The Getty in West Chelsea, developer Victor Group recently slashed prices from 42% to 53% on the four remaining unsold units. It comes two years after the sale of a penthouse in the West 24th Street building for a record $ 59 million.

But in addition to having to adjust to virtual screenings and the general decline in interest from potential buyers – many of whom have moved to the Hamptons and other places outside of town – Manhattan agents should also be aware. consequences of the virus.

“Calling people now, it could be like calling them after Shiva or after a funeral,” Ran Korolik, a partner in the Victor group, told the Journal. “You don’t know who died or how people were affected by the situation. Maybe their client didn’t get a salary this year. [WSJ] – Sasha Jones

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