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Developers have been saddled with an oversupply of new condos for years, and now thanks in part to the pandemic, which further hobbled the luxury market they’re taking steps to turn the tide.
It’s estimated that there are more than 15,000 unsold units across 900 projects, largely in Manhattan, with a total listed value of $45 billion, Bloomberg News reported. That’s resulted in developers lowering their prices, investors amassing funds to buy unsold units and lenders aggressively foreclosing on lingering projects.
Urban Standard Capital found that there are about 300 developments where 15 percent of the units remain unsold. Led by Seth Weissman, the firm has $100 million to buy out those units at a discount.
NYC’s $45 Billion Luxury-Condo Glut Set to Start Easing Soon
Bloomberg 3/9/2021 Oshrat Carmiel
(Bloomberg) Manhattan’s glut of luxury condos has been nearly a decade in the making. This could be the year the logjam starts to break.
Professional deal-seekers are amassing investment funds, ready to pounce at the chance to purchase unsold apartments in bulk. And developers with towers that started sales years ago are finally dropping unit prices to levels ordinary buyers are willing to pay.
At the same time, lenders are getting more aggressive, moving in to foreclose on long-lingering projects whose builders have fallen into delinquency. Those actions could potentially spill more deeply discounted homes onto the market.