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Low supply contributes to high condo prices

As people are priced out of the rental market and Manhattan condominiums are in thin supply, prices are on the rise, Crain’s reported. One example of the trend is 432 Park Avenue, whose developers have submitted plans to raise asking prices to $5,800 per square foot — a double-digit increase from the prices set in June. One bedrooms will ask $4.96 million and a six-bedroom will start at $64.4 million.

“Prices will be pushed higher if there is no relief in terms of supply,” Miller Samuel’s Jonathan Miller told Crain’s. “It’s the basic law of economics.”

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This is just one of 15 new condo developments that submitted higher pricing plans to the attorney general’s office this year — prices must first be attorney-general approved.

Indeed, the number of new condo projects set to hit the market in the coming years are falling short. So far in 2012, only 27 new condos — a total of 875 units — were submitted to the attorney general’s office. Back in 2006, 211 condos, or 15,827 units, were proposed. [Crain’s] — Zachary Kussin

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