Manhattan's luxury pied-à-terre market remains dynamic, despite efforts to curb it through taxation. While a Staten Island Supreme Court judge blocked the introduction of the Pied-à-Terre Tax – a controversial levy on second homes valued over 5 million dollars, initiated by Mayor Zohran Mamdani – in the second week of August, the first week of August saw an annual increase in corresponding sales.
According to data from Corcoran Sunshine, exclusively provided to Commercial Observer, 16 contracts above 5 million dollars were signed from 1st to 7th August. This represents a 7 per cent increase compared to the same week in the previous year (2025). Since the legislation was passed 16 weeks ago, sales of condominiums, co-ops, and townhouses valued over 5 million dollars have risen by 1 per cent compared to the same period last year. Compared to the five-year average, the increase is 3 per cent.
Overall, 302 sales over 5 million dollars were recorded in Manhattan from 18th April to 7th August, compared to 268 sales in the period from 31st January to 17th April. For the same April to August period, sales of properties valued between 5 million and 15 million dollars increased by 2 per cent year-on-year, while sales in the segment between 15 million and 25 million dollars saw an 8 per cent growth.
However, properties with higher prices, from 25 million dollars upwards, recorded a 20 per cent year-on-year decline. Nevertheless, these figures do not mean that no transactions are taking place in this segment. The largest contract signed in the week of 1st to 7th August involved a full-floor apartment at 1122 Madison Avenue, valued at 40.5 million dollars.
Sentiment regarding Mamdani's Pied-à-Terre Tax has been divided since the legislation passed at the end of May. A controversial video by the Mayor, which specifically mentioned Ken Griffin, CEO of Citadel, because of his 238 million dollar penthouse in Manhattan, led to speculation that Griffin might abandon the planned Citadel Tower in Midtown and focus on Florida instead. Despite increasing frustration among owners, sales activity has not come to a halt.
