New York Apartment Prices

Posted by Wei Min Tan on April 18, 2024

New York property report:  Manhattan condo market

 

 

Key Point 1:  Sales volume down 20.6 percent 

In Q1, 2024, sales volume was down 20.6 percent compared to Q1, 2023.  Since the second half of 2022, sales volume dropped significantly because of increases in mortgage rates.  In efforts to combat inflation, the Federal Reserve increased interest rates dramatically, and this increased borrowing costs.  Buyers who need a mortgage saw monthly payments increasing and became renters instead.

 

Currently, the national average 30-year mortgage rate is around 7 percent.  For context, in early 2022 it was around 3.5 percent.

 

 

Contact:  tan@castle-avenue.com

 

Weimin’s article, New York historical condo price trend

 

Key Point 2:  Still very high rents

Rental expense is about 30 percent of the inflation index.  With inflation that peaked at 9 percent about 2 years ago, rents commensurately increased.  Further, there is added demand from buyers who became renters as a result of high mortgage rates.  In February 2024, average rent was at $4,985 while vacancy rate was 2.49 percent.

 

 

 

Deal Example:  Investor client’s condo at Devonshire House, one of Manhattan’s distinguished prewar condos designed by Emery Roth.  Rented out in 2 days after receiving multiple applications.  This was our prewar condo investment strategy and it worked out tremendously well.  

 

 

 

Key Point 3:  Buying for price stability and yield

All cash buyers who are buying to rent out have the advantage.  This is because they are not exposed to high mortgage rates and are not competing with buyers needing a mortgage who have since converted to being renters.  The market can be summarized as follows:

 

1) Cash buyers have better negotiating position.

2) Investors can expect strong rents and rental yields.  

3) Completed new developments, where risk is lowest, are more negotiable in both price and concessions.

 

Market pulse below shows we are in a neutral market.

 

 

Deal Example: Client purchased this unit at 88 Greenwich Street.  17th floor with double height ceiling and water views.  One block from World Trade Center means strong appreciation potential.  There are 4 new residential condos coming up in the area, all with much higher prices per square foot.  The area is transforming and 88 Greenwich will benefit from it.

 

Weimin’s article, Investing in a Manhattan penthouse apartment

 

Deal Example: Client’s new condo in Hudson Square next to the new Google downtown headquarters (the new glass building opposite).  We booked at pre-construction, rented out immediately after closing.  

 

Weimin’s article, Buying a vacation home in Manhattan

 

 

What We Do

We focus on global investors buying Manhattan condos 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

 

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Related Links

Best Manhattan Property Agents

Manhattan Investing Strategies

New Property Projects In Manhattan, How We Pick Winners

About Wei Min

  • Focuses on investors of Manhattan condominiums, interviewed by CNBC, CNN, Wall Street Journal, New York Times
  • Ex-Citibanker, managed $500 million portfolio
  • MBA, University of Illinois at Urbana-Champaign
  • Manhattan resident since 1999. Currently lives in Tribeca with wife and 2 kids
  • 352 burpees in 23 minutes, student of muay thai kickboxing

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About Wei Min


  • Focuses on investors of Manhattan condominiums, interviewed by CNBC, CNN, Wall Street Journal, New York Times
  • Ex-Citibanker, managed $500 million portfolio
  • MBA, University of Illinois at Urbana-Champaign
  • Manhattan resident since 1999. Currently lives in Tribeca with wife and 2 kids
  • 352 burpees in 23 minutes, student of muay thai kickboxing

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