The super-prime market: New York City’s global dominance and why it matters

By Cait Etherington | From Get To Know Thursday, June 15, 2023

432 Park Avenue, #66AB (The Corcoran Group)

New York City has always supported strong super-prime ($10 million +) and ultra-prime ($25 million +) real estate markets. Although both the super-prime and ultra-prime markets did momentarily slow at the start of the pandemic, both markets are now performing better than ever. This article explores why the city's robust super- and ultra-prime real estate markets matter to all New Yorkers, not simply those who can afford to invest in luxury properties.

New York City’s super-prime market

According to Frank Knight’s 2023 Wealth Report, globally, the super-prime market declined in 2022 but only compared to 2021, which saw a spike in transactions due to pent-up buyer demand resulting from 2020’s restrictions on in-person property showings and global travel. In fact, despite the year-over-year decline, 2022 super-prime sales were 49% higher than 2019 levels. New York was the top-performing city globally, with 244 sales of US$10 million or more, with Los Angeles reporting 225 closes and London reporting 223 closes. On the ultra-prime market, New York and London were the top-performing cities worldwide, each recording 43 sales of US$25 million or more in 2022.

Still, whether New York City holds its top spot in 2023 is yet to be seen. A June 1 report, based on data collected by Douglas Elliman and Knight Frank, found that in Q1 2023, New York City only reported 58 super-prime closes, compared to 88 in Dubai and 67 in Hong Kong. London’s super-prime market also declined in Q1, experiencing a much sharper decline than New York (London only recorded 36 super-prime transactions in the year’s first fiscal quarter). While this may be an indication that both New York’s and London’s super-prime markets are slipping, Q1 is a historically slow sales period in both of these world centers. A stronger indicator of current super-prime and ultra-prime market trends will be what ultimately unfolds in Q2.

Why the super-prime market matters to everyone

Even if most New Yorkers will never own or rent a home on the super-prime or ultra-prime market, the strong performance of these markets matters more than one might assume. It primarily boils down to the taxes the owners of these properties contribute to the local economy. In New York City, roughly 41,000 tax filers in the top 1 percent pay over 40 percent of all income taxes. This is why the departure of many of the city’s wealthiest residents in early 2020 was viewed as cause for alarm. At least one late 2020 study speculated that the loss might end up totaling up to $34 billion.

In the end, the city’s feared tax losses were buffered by two factors. First, many New Yorkers physically left the city but only to live in second homes, so they continued to pay local taxes. Second, many of the New Yorkers who did leave for good were high-income earners, which meant that when their properties eventually sold, the city was able to collect additional mansion taxes on the sales. This also explains why the performance of the super-prime and ultra-prime markets matters to all New Yorkers.

High-net-worth individuals who own but rarely live full-time in the city's super-prime and ultra-prime properties have a disproportionate impact on New York City’s much-needed revenues derived from property taxes. As a result, when the super-prime and ultra-prime markets are doing well, the city itself also stands to benefit, and theoretically, so do all New Yorkers.

While the tax revenues derived from the sale of super-prime and ultra-prime properties and the ongoing tax revenues derived from the owners of these properties have an impact on the local economy, this isn't the only reason these markets matter. The presence of high-net-worth individuals also supports the local economy on a myriad of other levels ranging from job creation to philanthropy.

508 West 24th Street, #5NS
$11,000,000

Chelsea | Condominium | 5 Bedrooms, 4 Baths | 4,556 ft²

508 West 24th Street, #5NS (Compass)

From the Listing: Perched above the iconic High Line, this six-bedroom, four-bathroom full-floor loft invites you to live your best New York City life with an expansive, flexible layout, premium designer finishes, private outdoor space, and epic views that capture the energy and essence of the city. A private elevator with double-door access to each wing of the home invites you inside this impeccable sanctuary. A gracious gallery opens to a sun-splashed 29-foot-wide footprint for luxurious seating and dining areas. At the same time, the substantial terrace wrapped in the south- and east-facing treetop views over the High Line makes your dreams of seamless indoor-outdoor living a reality. Pocket doors reveal a breathtaking windowed kitchen, where custom cabinetry topped with Calcutta Gold marble surrounds a fleet of Viking appliances. The adjacent media room sets the stage for after-dinner lounging and epic movie nights with a custom-built bar, cigar humidor, and 497-bottle temperature-controlled wine room. This unit conveys the distinction of being owned by sports icon Carmelo Anthony. See floor plan and full details here.

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129 Lafayette Street, #PENTHOUSE
$12,500,000

NoLiTa/Little Italy | Condominium | 4 Bedrooms, 3.5 Baths | 4,647 ft²

129 Lafayette Street, #PENTHOUSE (Corcoran Group)

From the Listing: Spanning the top two floors of the building with a 2,400-square-foot wraparound terrace off the living room, Penthouse A features 360-degree views and modern architectural details throughout. Enter the top floor from the key-locked elevator, into the grand living room surrounded by oversized windows, 13-foot ceilings, custom concrete flooring and a wood-burning fireplace. The open layout flows into a modern chef's kitchen featuring Val Cucine cabinetry and top-of-the-line appliances. Off the kitchen is a separate media alcove with a dry bar and powder room. Surrounding the top floor is the expansive private terrace featuring incredible views perfect for entertaining or hosting dinner parties. Descend the steel-and-wood floating staircase to the 11th floor towards the four private bedrooms and 3 full baths. See floor plan and full details here.

111 Murray Street, #60E
$13,500,000

Tribeca | Condominium | 3 Bedrooms, 3.5 Baths | 3,200 ft²

111 Murray Street, #60E (Sothebys International Realty)

From the Listing: This remarkable residence has been meticulously designed by world renowned French architect and designer, Thierry Despont. This apartment showcases tremendous open city and water views, and a world class renovation for the ages. Perfectly positioned you will delight in the awe-inspiring panoramic 360-degree views. As you enter the residence, you are welcomed by a private vestibule, marvelous lacquered wenge wood doors and framing, bronze fixtures, opulent gold leaf and copper walls and elegantly appointed herringbone floors. The expansive great room includes separate living and dining areas and is draped in glass, the dramatic views serve as the pièce de resistance of the residence. Off the living room, you will delight in the chef's grade kitchen. Off the great room you will enjoy a separate media room with Hudson River views. The walls are wrapped with striking Loro Piano cashmere and features two built-in wall mounts that frame the room. The regal primary suite boasts astonishing water views and features a dressing room and large custom walk-in closet. See floor plan and full details here.

The San Remo, #4C
$15,750,000 (-10%)

Central Park West | Cooperative | 3 Bedrooms, 4.5 Baths

The San Remo, #4C (Corcoran Group)

From the Listing: Drenched in sunlight, this stunning residence in The San Remo has three magnificent entertaining rooms overlooking Central Park. Fit for entertaining and everyday living, each room boasts grand scale, generous proportions, and refined finishes throughout. There are three to four bedroom suites, four full bathrooms and a powder room. The residence features 10-foot ceilings, original restored Emery Roth historical details, custom millwork and moldings, raised doorways, twenty-three windows, solid Mahogany doors, Nanz hardware, and Waterworks fixtures. All mechanical elements of this sophisticated home have been fully modernized and include a Savant smart home system which controls the multi-zoned central air conditioning system, a Lutron lighting system, motorized shades and an audio/video system. Off a private elevator landing, one enters into the entrance foyer as well as a 20'10" long gallery, from which beautiful Central Park views are framed through oversized casement windows. See floor plan and full details here.

Charlotte of the Upper West Side, #PH2
$17,500,000

Broadway Corridor | Condominium | 4 Bedrooms, 4.5 Baths | 4,042 ft²

Charlotte of the Upper West Side, #PH2 (Compass)

From the Listing: The Penthouse Duplex at 470 Columbus is a magnificently designed home providing indoor-outdoor space along with healthy living and true comfort. A private entry and gracious foyer lead into the heroic main spaces. The grand living, dining and kitchen open onto a 3,188-square-foot landscaped terrace spanning the residence's length. Guardian Ultra Clear operable triple-paned, quadruple layer, floor to ceiling windows are anchored by wide European white oak planks elegantly set into a ladder pattern. Adding to the fine details are impeccable lighting, pre-wired soffits, and an integrated Lutron RA2 system with smart home connectivity. The meticulously designed Henrybuilt kitchen of silver oak cabinetry and warm aluminum accents is incredibly utilitarian while also sophisticated. In its own wing, the light-filled primary suite has a spacious closet, open views and a south-facing balcony clad in Italian porcelain tiles. On the upper level, enjoy alfresco dining or entertaining with a barbecue grill and panoramic views on the 853-square-foot terrace. See floor plan and full details here.

111 West 57th Street, #35
$20,250,000

Midtown West | Condominium | 3 Bedrooms, 3.5 Baths | 4,492 ft²

111 West 57th Street, #35 (Corcoran Group)

From the Listing: Enjoy beautiful views, light and high design in this prime full floor residence at 111 West 57th Street. The richly detailed finishes are conceived throughout by Studio Sofield and demonstrate an extraordinary commitment to craftsmanship and quality. The formal entry gallery is finished with white macauba stone floors and a dramatic north to south view gallery which leads into the expansive great room highlighted by intricately patterned floors in custom smoke-gray solid oak, 14-foot ceilings and floor-to-ceiling windows through which to enjoy the views of Central Park. The corner south-facing kitchen features a breakfast area, custom cabinetry in a light hand-rubbed finish, stepped crystallo white quartzite countertops and backsplash, and a full suite of Gaggenau appliances .A sprawling corner primary bedroom suite facing Central Park features a dressing room, windowed bathroom clad in veined white onyx with a custom freestanding polished nickel bathtub by William Holland and custom designed fixtures hand-cast by P.E. Guerin. See floor plan and full details here.

920 Fifth Avenue, #1415AD
$23,500,000

Park/Fifth Ave. to 79th St. | Cooperative | 5 Bedrooms, 5.5 Baths | 4,500 ft²

920 Fifth Avenue, #1415AD (Brown Harris Stevens Residential Sales LLC)

From the Listing: Ideally situated at the corner of Fifth Avenue and 73rd Street, this exceptional top floor residence is located in one of Fifth Avenue's most sought-after limestone-clad cooperatives. A private elevator landing opens onto an impressive 15 x 17 gallery which leads to a stunning 63 foot expanse of entertainment rooms overlooking Central Park and East 73rd Street. Light streams in throughout the day through over-sized windows overlooking the Central Park Boat Pond and lake, allowing for spectacular sunsets. The private south wing of the residence also overlooks Central Park and features four bedrooms and four bathrooms. The enormous main double-bedroom suite, with four windows overlooking the park, has double bathrooms and excellent closets. This residence is the only A line in the building to offer a separate, upstairs floor that provides for an additional full bedroom and bath, as well as a staff suite and bath. See floor plan and full details here.

1016 Fifth Avenue, #2ABC
$29,500,000

Carnegie Hill | Cooperative | 6+ Bedrooms, 6+ Baths | 8,000 ft²

1016 Fifth Avenue, #2ABC (Brown Harris Stevens Residential Sales LLC)

From the Listing: This triple-mint apartment in one of Fifth Avenue's finest buildings recently underwent a two-year renovation, resulting in a pristine and stunning 14-room home. A private elevator landing opens into an elegant gallery which leads to a spectacular 70-foot expanse of entertainment rooms facing onto Fifth Avenue and overlooking the Metropolitan Museum Of Art's tree-lined landscaped plaza and fountains. Adjacent to the enormous dining room is a 1,000-bottle wine room, which is temperature controlled and humidified. At the center of the floor plan is the amazing and enormous 500-square-foot eat-in-kitchen, with outstanding storage space, long-plank hardwood flooring and top-of-the-line stainless steel appliances. The private bedroom wing of the home consists of five well-proportioned bedrooms, each with its own renovated en-suite bathroom. See floor plan and full details here.

55 West 17th Street, #PH
$35,000,000

Chelsea | Condominium | 6+ Bedrooms, 6+ Baths | 6,659 ft²

55 West 17th Street, #PH (Compass)

From the Listing: Unprecedented, custom-built, and recently finished, this architecturally significant penthouse oasis features panoramic, protected views, a private rooftop featuring a full-sized pool and hot tub, and private parking in the basement directly accessed via the building elevators. While the finishes and fixtures are of the highest order, equally impressive is this rare, ultra-wide space that affords exceptional light and views to the south, north, east, and west with hundreds of feet of frontage and 40 large windows. A glamorous custom Lindsey Adelman chandelier with delicate brass chains and a gold foil lining cascades down the staircase's center. All floors are accessed via two elevators, and the elevator doors open on the middle level to reveal an expansive living and dining space with an adjacent kitchen with barrel-vaulted ceilings over the living and dining areas. Specialized paint and plaster finishes, wood paneling, wallpaper, and textured fabrics, in addition to walnut floors, create a tactile sense of depth throughout. See floor plan and full details here.

432 Park Avenue, #66AB
$54,300,000

Midtown East | Condominium | 6+ Bedrooms, 6+ Baths | 8,055 ft²

432 Park Avenue, #66AB (Corcoran Group)

From the Listing: 66A can be efficiently combined with 66B to create an 8,055-square-foot extraordinary full-floor residence offering a perfect balance of space, privacy, dramatic views, and design. Designed by NYC-based design studio Sissy + Marley and featured in Elle Decor, Residence 66A at 432 Park Avenue is a beautiful example of neutral and monochromatic design with subtitle elements that seamlessly flow from room to room while maximizing the use and enjoyment of each space. This contemporary, fully renovated floor residence is a beautiful, functional, and inviting space featuring a perfect balance of scale, privacy, dramatic views, and clean design. Welcomed by a private elevator landing with Terrazzo flooring, custom millwork, and a built-in bench with storage, this three-bedroom residence spans over 4,000 square feet with soaring 12'6" ceilings, perfectly framed by the iconic 10' X 10' windows synonymous with 432 Park Avenue. Soaring at an impressive elevation of over 725 feet above Park Avenue, this residence features awe-inspiring views of the East River to the Atlantic Ocean, Central Park, and the Manhattan skyline framed by its iconic window seats. A separate service entrance directly leads to a private service corridor and elevators connecting this residence's northern and southern wings, allowing for maximum privacy. See floor plan and full details here.

Central Park Tower, #107
$175,000,000

Midtown West | Condominium | 6+ Bedrooms, 6+ Baths | 12,557 ft²

Central Park Tower, #107 (Douglas Elliman Real Estate)

From the Listing: This expansive two-story masterpiece in the sky is impeccably designed for the most discerning luxury buyer. The magnificent residence makes an awe-inspiring impression with its soaring ceilings, top-of-the-line finishes, and massive floor-to-ceiling windows on four exposures showcasing magnificent unobstructed views of Central Park, Midtown, Downtown, both rivers and beyond. Savor stretching vistas of sunrises, cityscapes, and blue water and sky by day, and sparkling city lights and brilliant sunsets in the evening in your private oasis occupying the 107th and 108th floors of one of Manhattan's most coveted buildings, located on prime West 57th Street. Two terraces totaling 240 square feet extend the views and provide a place for outdoor pleasure. An in-residence private elevator services this expansive sun-drenched 12,557-square-foot, 7-bedroom, 8-bathroom and 2 powder room jewel wrapped in fine design. A gracious central gallery greets your arrival and introduces the elegance on the 107th story, leading to exceptional public rooms. Glass doors open to a large terrace where you can sip coffee or cocktails. Ascend the striking spiral staircase to find 5 tranquil en-suite bedrooms, including the phenomenal primary retreat with a private sitting room, huge his and her dressing rooms, and fabulous his and her spa-like baths. See floor plan and full details here.

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Contributing Writer Cait Etherington Cait Etherington has over twenty years of experience working as a journalist and communications consultant. Her articles and reviews have been published in newspapers and magazines across the United States and internationally. An experienced financial writer, Cait is committed to exposing the human side of stories about contemporary business, banking and workplace relations. She also enjoys writing about trends, lifestyles and real estate in New York City where she lives with her family in a cozy apartment on the twentieth floor of a Manhattan high rise.

Read Full Bio | Contact Cait Etherington

This is your member's center

In this article:

New York City’s super-prime market

Why the super-prime market matters to everyone

508 West 24th Street, #5NS
$11,000,000

Select which properties are of interest to you:

129 Lafayette Street, #PENTHOUSE
$12,500,000

111 Murray Street, #60E
$13,500,000

The San Remo, #4C
$15,750,000 (-10%)

Charlotte of the Upper West Side, #PH2
$17,500,000

111 West 57th Street, #35
$20,250,000

920 Fifth Avenue, #1415AD
$23,500,000

1016 Fifth Avenue, #2ABC
$29,500,000

55 West 17th Street, #PH
$35,000,000

432 Park Avenue, #66AB
$54,300,000

Central Park Tower, #107
$175,000,000

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In this article:

New York City’s super-prime market

Why the super-prime market matters to everyone

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Select which properties are of interest to you:

Listings in this article

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