Manhattan, New York Property Historical Price Trends
Posted by Wei Min Tan on July 13, 2021
Manhattan Condominiums and Cooperatives
The Manhattan property inventory consists of 70 percent rental buildings, 20 percent Cooperative apartments and 10 percent Condominium apartments. Cooperatives and Condominiums are units that can be purchased individually (as opposed to needing to buy the whole building). Below are graphs for Condominiums and Cooperatives blended mix for price per square foot, median price and sales volume.
Data: Miller Samuel Appraisers
Average price per square foot: Graph above shows historical appreciation trend of Manhattan condominiums and cooperatives in terms of average price per square foot. In 1997, the average price per square foot was $328. 2017 set the new price record at $1,775 per sqft, then decreased to $1,657 in 2019. The downturn between 2017 to 2019 was firstly due to the natural real estate cycle and specifically because of an oversupply of high end apartments, a new federal tax bill that decreased interest deductibility and global trade wars. In 2020, Manhattan was hit hard because of the COVID-19 virus and prices came down further to $1,387 per sqft in Q1’2021. In Q2’2021, the market recovery started and prices increased to $1,548, driven by low mortgage rates, pent up demand from 2020 and reopening of New York.
Note that the average price per square foot of a Manhattan condominium in Q2’2021 was $1,921, representing a significant premium over the condo/coop average shown in the graph.
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Deal Example: Investor client’s 35th floor condo in luxury FiDi building, view apartment overlooking New York Harbor. Client purchased with tenant in place and there has been no vacancy period since. Driver of the purchase decision was proximity to World Trade Center and pricing value.
Weimin’s article, Buying Manhattan apartment to rent out as diversification strategy
Median price: Graph above shows the historical median price of a Manhattan condo/coop increasing from $239,000 in 1997 to $1.130 million in Q2’2021. While the graph shows the blended average of condo/coop, note that the median price of a Manhattan condo in Q2’2021 was $1.65 million.
Deal Example: Investor client’s prewar West Village condo with high ceilings, amazing open views and prewar charm. These wow factors got the apartment rented in one week! Weimin’s article, Investing in West Village.
Number of transactions: Graph shows the trend for number of transactions per year, from 1997 to 2020. The peak was 13,430 transactions in 2007, the height of the market, while the valley was 7,048 transactions during Covid 2020. Note that we had 3 months of lockdown in 2020 and the sales volume for 2020 only represents 9 months of activity.
Learn more New property projects in Manhattan, how we pick winners
Deal Example: Client’s condo at 111 Murray Street in Tribeca. Reserved the unit at pre-construction, waited two years for completion after which market price increased 20 percent. The green building opposite is the Goldman Sachs headquarters and one of the reasons we decided to pursue this unit.
Weimin’s article, How to invest in new launch property in Manhattan
What We Do
We focus on global investors buying property in Manhattan, New York for portfolio diversification and long term return-on-investment.
1) Identify the right buy based on objectives
2) Manage the buy process
3) Rent out the property
4) Manage tenants
5) Market the property at the eventual sale
Data sources: Miller Samuel Appraisers
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Wei Min Tan is a Manhattan, New York property broker focusing on global investors. He has been interviewed by CNBC, CNN, New York Times and The Wall Street Journal on the subject of investing in Manhattan property. Wei Min can be reached at [email protected]
Related Links:
Foreign Buyer Guide To New York Property