In certain projects, developers are contemplating price reductions or conversion to rental. One senior development director told me, "Sales have dried up in Long Island City even for products in the best locations. Since October, we have only sold five units."
The Divide Between Manhattan, Other Boroughs
One prominent industry leader who requested anonymity said: "Condos in general are clearly not selling at the pace they were a year ago. There has been massive overbuilding in the entire borough of Brooklyn. It is like the Wild West, and if you don't control growth, then at some point it's going to get out of hand."
"Developers have been offering incentives and have been negotiating more," the source added. "Buyers are taking longer to make decisions to purchase for a couple of reasons: (a) They are nervous about purchasing when they may believe if they wait they could buy the same or similar product for less later, and there is a lot of product in the market to look at; and (b) there is no fear that if they don't buy the unit today, the guy in line behind them will buy it, because in general there are no lines anymore."
The president of W Financial, Gregg Winter, said: "Mediocre projects — uninspired designs thrown up in ho-hum locations — are now justifiably suffering and selling at a pace akin to Chinese water torture. For years these projects would somehow manage to get financed, built, and slide though the system buoyed by a rising tide that caused amateur developers to believe they actually knew what they were doing..."