Luxury apartment buildings in New York City are surviving the construction slowdown.
More than 7,000 new apartments are expected to open in 2010, many of them concentrated in Manhattan's Hudson Yards, downtown Brooklyn, and Williamsburg. Many of the units were constructed originally to be condominiums.
Owners are offering significant incentives to potential tenants to combat declining rents and high unemployment.
Investors believe renting is the wave of the future. Jonathan J. Miller, the president of the appraisal firm Miller Samuel and a partner in Condominium Recovery, formed to buy distressed condo projects as rentals, says conversion units will further depress rental prices, but the rental market still looks more promising than the luxury condo sales market.
Source: The New York Times, Vivian S. Toy