Developers Cease to Offer Condo Incentives


The optimism that has washed over the New York real estate market this spring has swept up new developments in its wake. As recently as late last year, buyers could expect to negotiate with developers on price and closing costs like taxes and legal fees. But these incentives are rapidly drying up, buyers, brokers and developers say.


Incentives have also ended in many neighborhoods not considered the choicest in Manhattan or Brooklyn. Joelle Deroy and her family had lived in Manhattan for 20 years before returning to France about two and a half years ago. “We miss New York and wanted an investment property that could eventually become a pied-à-terre,” said Ms. Deroy, an artist. She recently signed a contract for a studio at the Apex, a 44-unit condominium at 2300 Frederick Douglass Boulevard in Harlem, above the Aloft hotel.

“They were very firm about the price,” said Fabienne Lecole, a senior vice president of Corcoran, which represented Ms. Deroy. “This is pretty new, especially in Harlem. I knew the apartments had been on the market for a while, so we were hoping to get some kind of negotiation. But all of a sudden the market accelerated and there were three offers on the unit, so we paid very close to asking price and were given zero incentives.”

The deal has not yet closed, but studios in the building have gone into contract for $325,000 to $370,000, said Martin D. Brady, the vice president for sales of the Marketing Directors, which is representing the Apex.

“We signed nine contracts in April,” Mr. Brady said, “and two were for the full asking price, while the others were within 2 to 3 percent of the asking price.”


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