How a handful of projects reshape Manhattan’s luxury markets

Just a handful of addresses are driving the luxury market in some of Manhattan’s priciest neighborhoods.

Last quarter, signed contracts at the borough’s hottest new developments accounted for hefty shares of the luxury volume in their respective neighborhoods, boosting activity and, in some cases, doubling the median price per square foot.

The findings come from a new quarterly report published by Douglas Elliman’s Heather Domi, who launched a platform called Domi Data, backed by data from Marketproof.

In two neighborhoods, a single building contributed the majority of deals inked for homes asking $4.95 million and above during the three-month period.

In Hudson Yards, Related Companies and Oxford Property Group’s 35 Hudson Yards represented more than 86 percent of luxury deals in Hudson Yards, which ranked once again as the most expensive neighborhood in Manhattan last quarter, per a Property Shark report.

The Brodsky Organization’s and Sorgente Group’s conversion of the Flatiron Building accounted for 72 percent of the volume in Flatiron, while in West Chelsea, One High Line, developed by the Witkoff Group and Access Industries, accounted for nearly half of luxury contracts in the neighborhood.

Elsewhere, individual projects represented a smaller share of deal volume but still had an outsized influence on neighborhood activity and pricing.

In the West Village, Zeckendorf Development and Atlas Capital’s 80 Clarkson accounted for nearly 30 percent of luxury contracts, but its average asking price of roughly $8,400 per square foot last quarter was more than double the neighborhood average, excluding other new developments in the area, of about $3,000.

Aurora Capital Associates’ 140 Jane Street had a similar effect. Though it represented just 12 percent of signed contracts, its average asking price of roughly $7,400 per square foot was also more than twice the neighborhood resale average.

On the Upper East Side, Legion Investment Group and Nahla Capital’s 1122 Madison Avenue made up 22 percent of the neighborhood’s luxury contracts, while its average asking price of $5,200 per square foot was about double the neighborhood resale average of $2,500.

The results of Domi’s report raise questions about what activity in those neighborhoods will look like once the buildings powering their markets sell out, particularly as Manhattan’s new development pipeline continues to shrink.

That dwindling slate of projects is already showing up in weekly contract reports. Earlier this week, Olshan Realty pointed to a drought of inked deals at new developments over the past four weeks, attributing the slowdown to the lack of new inventory.

With few projects poised to replace today’s top sellers, Manhattan’s next generation of hot spots may be harder to come by if activity slows in some of the neighborhoods now dominating the luxury scene. It also means sales could become even more concentrated with fewer options for buyers shopping for new homes.

In case you missed it…

United States Representatives sent letters to the CEOs of Compass and Midwest Real Estate Data earlier this week, requesting a briefing on their private listing partnership.

The House Judiciary Subcommittee on the Administrative State, Regulatory Reform, and Antitrust is opening an inquiry into alleged anticompetitive practices at some real estate companies and is turning its focus to an agreement between Compass and MRED to display Compass’ private listing network on its platform.

The subcommittee requested Compass’ Robert Reffkin and MRED’s Rebecca Jensen to appear before them no later than Aug. 5 at 10 a.m.

NYC Deal of the Week

The most expensive home to land in city records this week was a townhouse attached to the Rudin family and Global Holdings’ condo conversion project, known as the Greenwich Lane. The home at 141 West 11th Street sold off-market for $35 million to a buyer whose identity is shielded by an LLC, known as Bodega Flowers.