Homes and Lofts
Condos get smaller and pricier
According to a survey done in New York City by Yale Robbins Inc., condominium prices have been steadily going up while their square footage has been plummeting down.
A comparison between the 2003 and 2004 sales in the city published on their recently launched Web site, www.condo-sales.com shows that the average size of an apartment sold south of 14th Street went from 2,326 square feet at $833 per-square-foot in 2003, to 1,986 square feet at $919 per-square-foot in 2004.
The survey of sections of Manhattan looked at the broad area south of 14th St., and did not have specific information about condo sales in Battery Park City and Tribeca, for example.
Henry Robbins, vice president of Yale Robbins thinks retail mentality is behind this trend. Just like something priced $995 is easier to sell than something priced at $1000. It is like lesser space but in a bigger universe. You play with the consumers psychology. This is why even this sector is now having to adopt clever pricing tactics, he said.
As more units get squeezed into vertical space, prices show an upward trend, he added. Basically, we are paying more for less space because people are not moving as much as they used to. They are buying an apartment and staying there, Robbins said.