New Brand of Condos in NYC Offer Affordable Luxury

February 17,2015 | By Robert Moses

 It is little secret that when it comes to condos for sale in NYC, prices tend to be on the high side. This is particularly true when looking for condos for sale in Manhattan. Recently,however, a new segment of the market has emerged: apartments for sale in New York City for less than $3 million. Among the properties making new condos in NYC more affordable is Carnegie Park. This property, build in the 1980s, has been renovated to serve as a condo building and now offers one-bedroom apartments with just under 700 square feet at a price tag of $765,000. As a whole, the property boasts units at approximately $1,300 per square foot. While that might sound like a lot for some bargain shoppers, it is still easily 30 percent less than most newly constructed condos for sale in Manhattan. The demand for the condos is so strong, it has become difficult for prospective buyers to get an appointment to see the property. 

 

Developers Moving in a New Direction 

Luxury condos in New York have set trends and price records for the past several years. However, developers in Manhattan have turned their attention toward meeting the demand for buyers who are not able to afford higher-end condos in NYC. While the prices of apartments for sale in New York City are still well above that of the rest of the country, the new wave of development is making it possible for first-time homebuyers who have been priced out of the market in the past. Developers who have opted to focus on this segment of the buying population have done quite well. 

Most of the non-luxury condos for sale in Manhattan are older rental properties. By renovating these properties, developers have been able to avoid the costs associated with trying to locate and acquire vacant land and then build new properties from scratch. 

Expiring Tax Breaks Driving New Condos in NYC 

As competition in newly built properties in Brooklyn and Queens continues to grow, conversions have become increasingly popular among landlords in Manhattan. Among the most attractive properties are buildings that were constructed years ago using city tax breaks. When the incentives expire, landlords can see their taxes increase by 30 percent or more. Property owners find it difficult to increase rents in order to cover the costs. Conversions provide an excellent solution to what has become a serious problem. Even developers who are not faced with expiring tax incentives have begun to latch onto the chance to convert rentals into condos, recognizing the opportunities offered by the current market. The key to making newly renovated condos in NYC attractive to buyers is to provide a wealth of amenities, such as a fitness center, children's craft room or playroom, or even a dog park. At prices of typically less than $3 million per unit, these condos for sale in NYC are often seen as a great deal.