Bloomberg's Oshrat Carmiel reports that Manhattan-based Extell Development is drawing back from its original plan to list 38 units at its One57 tower for lease after concluding the market for luxury condos is better than for high-end rentals.
Amid a recent abundance of supply, demand for luxury rentals have slipped causing the company to choose to sell them instead. Located on the 32nd through 38th floors of the West 57th Street skyscraper, the condominiums will be priced from $3.45 million.
Luxury rentals are proliferating in Manhattan as buyers of pricey condos, in many cases out-of-town investors, take possession of their apartments then quickly list them for lease. The added supply is pushing down rents for the most-expensive units. The median monthly rent for a Manhattan luxury apartment -- the top 10 percent of the market -- fell 3.5 percent in March from a year earlier to $8,228, appraiser Miller Samuel Inc. and brokerage Douglas Elliman Real Estate said in a report last week.