Manhattan Luxury-Home Demand Sparks a Record Week for Sales

(Bloomberg) -- Manhattan luxury-home sales had their best week of the year as well-heeled buyers stepped up their demand for larger spaces. 

In the week through Nov. 21, there were 67 contracts signed for properties priced at $4 million and above, the most for any seven-day period in 2021, according to a report by brokerage Olshan Realty Inc. The dollar value of those deals totaled $613.7 million, the highest weekly tally in data going back to 2006. 

Wealthy Manhattanites are emerging from the pandemic with large stock-market gains and a desire to upgrade their residences. After many spent a year or more in remote suburban locales, they’re returning to the city to find an abundance of inventory -- and plenty of chances to splurge on a bigger apartment. 

“The first thing they notice is they don’t have enough space,” said Donna Olshan, president of the brokerage. “The kids are struggling with trying to live in the city, and the pets aren’t so cooperative.” 

Last week’s most expensive contract was for a 23,450-square-foot (2,180-square-meter) townhouse at 9 E. 68th St. that was listed at $29.5 million. 

The second-priciest home to find a buyer was a limestone mansion owned by financier Phil Falcone, at 22 E. 67th St., on the market since March 2018 and most recently listed at $27.5 million. A foreclosure auction had been scheduled for earlier this year after lenders sought to recoup unpaid loans used to renovate the home, purchased by Falcone and his wife in 2004. 

Harlan Lazarus, the New York lawyer who represented Falcone in court proceedings on the matter in August, didn’t immediately return a message left with his office.

While co-ops have been losing out to a boom in condo sales, last week’s deals show that with the right discount, even units at buildings with restrictive rules can find buyers. 

A five-bedroom co-op at 1035 Fifth Ave. -- where only 50% financing is allowed -- found a taker after nine months. The asking price of $9.95 million was 15% less than the seller initially sought. As with all contracts, the final sale price won’t be known until the deal closes.  

Rising prices for high-end condos are making some buyers willing to consider a co-op again, even if it means going through an intrusive board interview and living with limitations on how the apartment may be used and purchased, according to Olshan. 

“Some of them have decided to suffer if they can get a big-enough discount,” she said.  

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