Bagholder's Row: Manhattan's One57 Apartment Prices Plummet, Billionaires Lose Millions

The coronavirus pandemic has already spawned an exodus from major cities and now, with a new nationwide focus on work-at-home, motivation to move to big cities may be dwindling. 

And if "Billionaire's Row" is any indication of how real estate pricing in Manhattan is trending, look out below.

A full floor apartment at the "coveted" One57 building, one of the flagships of billionaire's row, just sold for $28 million about 6 years after it was initially purchased for $47.4 million, according to Bloomberg.  

It marks a 41% discount for the home in the span of about a half-decade. The plunge in prices would be the biggest discount to date at the building. 

Development for One57 started in 2009 and the building became iconic in representing Manhattan's luxury condo boom that has played out since the Great Recession.

One penthouse in the tower even sold for as much as $100 million back in 2014. But now, with a real estate glut and demand falling off, original buyers have been trading in their homes at losses. In 2017, for example, resales at the tower sold for an average of 25% less than the 2014 purchase prices.

In this case, the buyer and the seller may have been related, according to Bloomberg, which may have also factored into the steep discount. 

In late 2019, we reported that "Billionaire's Row" had beat out Hong Kong for the title of World's Top Luxury Street. In 2019, 57th street in New York City saw more houses bought for $25 million or more than any other road in the world.  

 

The area just south of Central Park beat out Mount Nicholson Road in Hong Kong's Peak District for the title of most "ultra-prime" home sales. However, the Hong Kong area far trumped the average sale price on Billionaire's Row, by a score of $81.8 million to New York's $38.5 million.