Sales in New York City have slowed down so much that many developers of luxury properties are planning to slash their prices - by as much as half - reports The New York Times.
Many of these developers plan to auction their properties, a tactic common outside of the city, but rarely resorted to in the Big Apple. These types of auctions have the potential to reset new condos to pre-bubble prices across the city.
"We have quite a large investment in a new condo building in a good location downtown,” one lender said. But sales have been “very, very slow,” he added. The units are currently priced at $1,000 per square foot. He expects to start the bidding at $600 per square foot.
Business Insider reports that Manhattan condo inventory is piling up four times as fast as it can be sold. A real estate insider told the publication that sellers are now putting about 1,500 units per month on the market.
New York City 2010
