Harry Macklowe remains optimistic about New York City’s ultra luxury market, though he admits the appetite for super-pricey pads is now much more limited.
Speaking to Bloomberg, Macklowe said waning demand means there should be less development geared towards the very top end of the market. He said apartments at very high price points will still sell, but it will be at a slower rate than at Places Like 432 Park Avenue and Extell Development’s [TRDataCustom] One57.
“The development community knows how to protect itself,” he said. “And it should be able to price itself intelligently enough so it is able to meet the peaks and the valleys of the market.”
There will be fewer buildings aimed at luxury buyers, according to Macklowe, but he does not think ultra-pricey places coming online are in trouble.
“I only think a property in the condominium world is doomed if it is over-financed, if it is not built with a heavy equity component,” he said.
Macklowe added that the Trump administration is responsible for higher confidence in the country’s real estate industry.
“I think it’s wonderful that we have a strong business leader in the white house,” he said. “I think that the cabinet choices have been very wise.”
Speaking at a panel last month, Macklowe said the sale of Sandy Weill’s apartment at 15 Central Park West was the “shot heard around the world” — and what allowed developers like Extell to aim for prices of $7,000 per square foot. [Bloomberg] — Miriam Hall