$100 Million Plus for a Strata Apartment

Wanna buy the most expensive apartment in the world? All you need is US$110 million and it's yours.


That's the asking price for the penthouse at One57 in Manhattan, New York City.  It's a glass walled six-bedroom apartment of 10,923 square feet, is on the 89th and 90th floors and overlooks Central Park opposite Carnegie Hall.  But you'll have to buy off the plan as it's still under construction by Extell Development Co.  You can read more about it and other high priced New York apartments in this New York Times article.


I'm sure the penthouse comes with serious bragging rights and very nice living arrangements.  But, it also comes with all the other 'foibles' of strata owning and living.


You'll have levies or contributions to pay and if they follow the industry average rate of about 1.5% of market value that's about US$1.5 million per year.


But you'll only get one vote at meetings (like other owners) and so can expect to get out-voted on what matters most to you.  Plus, your lot or unit entitlements in such a large building are likely to be pretty low so there's not much point calling for a poll vote.


If you want to be on the committee or board you'll need to get a few other owners to support you at the election.  And, you can expect to receive exactly the same information and treatment as every other owner (which isn't much compared to what you'd be used to if you can afford the penthouse).


If there are water leaks or equipment malfunctions (or building defects) you and the other owners will need to get the manager to repair things and make claims against the developer like every other strata owners and strata corporation.

So, owning the world's most expensive strata apartment is going to be a different experience to owning other $100 million freehold properties; but it shouldn't be!  After all, when you buy and own strata real estate you should expect at least the same quality, convenience and experience as other property ownership (regardless of the price).  


Perhaps as apartment prices reach these stratospheric levels we'll see new and better strata owner experiences which can be passed on to everyone else?  I hope so.


Francesco ...