Underestimation is a new luxury


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When inspecting the apartments with the buyers, she added: “The spaces that I see that attract them and want to go further have a design that is very quiet and very soothing, with natural elements.”

There are many factors that lead to the transition to a simpler design. Trends are always cyclical, and we may be entering a period of minimalist and undervalued detail. The pandemic has changed buyers’ priorities, and interiors with familiar design details can be reassuring, which can make them more desirable.

Another big consideration is the massive surplus of flats with stratospheric prices. “The challenge was that the new developments in this go-go period, which really culminated around 2014 and 2015, focused on super luxury, wars with equipment, materials and uniqueness,” said Jonathan Miller of Miller Samuel, which defined ” super luxury ÔÇťApartments like those that cost more than $ 5 million. “And now you’re in a market where the north of $ 2 million is disproportionately softer than under $ 2 million in activity.”

By the end of 2020, Mr. Miller is estimating 8,700 unsold new development apartments in Manhattan, which will take approximately 8.7 years to sell out. “In a balanced market, you would expect them to sell out in two to three years,” he said.

One way developers can succeed in such a market is “to create a product that has been very missed,” he said, including apartments at somewhat more affordable price points. “I call it ‘housing for mere mortals,’ ‘Mr. Miller said.

When developers are trying to keep prices lower, less money is available for dazzling stone, bespoke bronze hardware and Gaggenau steam ovens. But this may be perfectly acceptable to many buyers today.

“Who doesn’t feel anxious?” Who doesn’t know what’s next and what’s going to happen in the world? “Mrs. Parker asked. “To have these places that feel like a big hug and feel calm – I knew the New Yorkers needed it.”

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