It’s Amenity Vs. Amenity in Luxury Multifamily Competition
NEW YORK – There’s an amenities war beginning in the luxury condominium and apartment market. Pools, playrooms, and yoga studios have become commonplace, forcing developers to offer even more lavish add-ons or risk losing prospective buyers willing to pay millions of dollars.
In addition to spas, pet spas, concierges and smart technologies that control speakers and more, developers are looking to cryotherapy rooms and other extravagant perks for multimillion-dollar units.
Prices in New York, for example, have been declining for ultra-luxury condos after peaking in 2016, according to data from StreetEasy. The site found a mismatch between decisions by developers to keep building bigger, better condos, and the number of people willing to buy them, causing a glut at the high end.
Jessica Lautz, vice president of demographics and behavioral insights at the National Association of Realtors®, says workforce housing is in short supply, but developers keep focusing on ultra-luxury because they think it offers them the biggest profit.
“What we have in any market cycle when the talk turns to amenities are signs that sales are slowing,” says Jonathan J. Miller, president and chief executive of Miller Samuel.
In the end, buyers just want the most spacious apartment they can afford.
Source: The New York Times (08/30/19) Sullivan, Paul
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