You could blame the new mansion tax for last week's flat Manhattan's luxury residential sales.performance.
According to Olshan Realty's luxury market report for Manhattan properties $4 million or above, there were only nine properties that signed into contract for the week of July 1-7: two co-ops and seven condos. It was the first time that less than 10 luxury New York City homes entered into contract since December.
It may have seemed at first that the July 4th holiday was the reason for the slow activity. But a more likely factor was the new mansion tax, which went into effect on July 1.
“The rush to close properties before the July 1 increase in the New York State Mansion Tax caused many buyers to accelerate their purchases and thus deplete last week’s totals,” according to Olshan.
The biggest transaction of last week was for a condo at 7 Hubert Street in Tribeca that signed into contract for $9,725,000. The four-bedroom/four-bathroom, 3,253-square-foot unit features 12-foot-high ceilings, floor-to-ceiling windows in the living room, and an eat-in kitchen. The amenities of the building include a full-time doorman, a live-in super, a fitness center, and a common garden.
Coming in second was a three-bedroom/three-and-a-half-bathroom condo unit at 1107 Broadway that entered into contract for $7,650,000. Among the 2,391-square-foot apartment's highlights are views of Madison Square Park, two walk-in closets, Sub-Zero appliances, and a marble bathroom. The building's amenities consist of a health club, a heated pool and Sub-Zero appliances.
A 2,476-square-foot condo at 845 United Nations Plaza ranked third in last week's transactions when it signed into contract for $6,100,000. The apartment boasts 12-foot ceilings, floor-to-ceiling windows, and city and East River views.
David Chiu is an associate editor at The Cooperator.