"Swaying in the Wind, Trapped in the Elevator"... $180 Billion Manhattan Skyscraper Apartment Prices 'Halved'

Originally Listed at 180 Billion Won, Dropped Sharply in 2 Years
425m Super-Tall Residential Complex in Manhattan
Decline in Ultra-Luxury Real Estate Demand and Strong Dollar Effect Cited

The price of the ultra-luxury apartment at 432 Park Avenue, located on Manhattan's 57th Street?known as the "Billionaire's Row" in New York City?has dropped by half over the past two years.

Negotiations underway at $93 million for a $180 million listing over two years... Lack of demand for ultra-luxury real estate and building defects cited

432 Park Avenue, a supertall mixed-use residential building located in Manhattan, New York.
[Image source=Yonhap News]

On the 12th (local time), The Wall Street Journal (WSJ) reported that a full-floor residence at the ultra-tall mixed-use apartment building 432 Park Avenue in Manhattan is being negotiated at about $70 million (approximately 93 billion KRW).

Originally owned by a famous Wall Street hedge fund founder, the apartment was initially listed at $135 million (about 180 billion KRW), but no transaction has been completed in the two years since it was put on the market in 2021.

If the current negotiation closes at $70 million, the deal will be made at half the original asking price.

The primary reason for this price drop is attributed to the unique characteristics of the U.S. ultra-luxury real estate market.

While the general U.S. housing market is experiencing rising prices due to supply shortages, the ultra-luxury real estate market continues to suffer from a lack of demand.

Additionally, one major factor is that 'foreign tycoons,' who have strong demand for U.S. ultra-luxury properties, have seen their purchasing power weakened due to the strong dollar phenomenon.

Another reason is presumed to be defects in 432 Park Avenue itself, which have negatively impacted the transaction.

Standing at 425.5 meters tall, the ultra-tall mixed-use building 432 Park Avenue has experienced conflicts between residents and the management company over apartment defects since its early occupancy.

New York Central Park
[Image source=Pixabay]

While ultra-tall buildings are originally designed to sway somewhat in the wind, 432 Park Avenue’s slender, rod-like shape makes it more vulnerable to wind.

During the building’s swaying, it generates louder noises than other buildings and exposes internal facilities to risks. In 2019, during strong winds causing the building to sway, a problem occurred with wiring inside the elevator shaft, trapping residents inside the elevator for 1 hour and 25 minutes.

Also, in 2018, a pipe joint that could not withstand the high pressure from pumping water to the upper floors burst, flooding some residences and halting elevator operations.

Meanwhile, the unit under negotiation occupies an entire floor and is reported to include five bedrooms and a Japanese-style tea room.