2022 Cost of Manhattan, New York Flats
Posted by Wei Min Tan on May 10, 2022
Manhattan, New York flats are divided into two categories — condominiums and cooperatives.
Condominiums are where one owns property title. The owner can rent out the flat and make renovations as desired. The concept of a condominium is similar to how flats are in the rest of the world. Meanwhile, a Cooperative is specific to New York City. The owner of a Co-op flat doesn’t own title to the property. Technically, the owner of the Co-op flat owns shares in the building and has a proprietary lease (long term indefinite lease).
Weimin’s article: Co-op versus Condo in Manhattan
Essentially with a co-op, board approval is needed for a transaction to take place and the board can reject without reason. In addition, with a co-op, there are limitations with renting out. This is why the price of a condominium flat is a lot higher than that of a co-op.
2022 Cost of Manhattan, New York Flats
Based on the most recent data, the median cost of a 2-bedroom Manhattan, New York condo flat was $2.3 million, while the median cost of a 2-bedroom co-op was $1.34 million. We can see that the price of a 2-bedroom condo is 71 percent higher than that of a co-op. Looking at three bedrooms, the median price of a 3-bedroom condo flat in Manhattan was $3.7 million, 68 percent higher than a 3-bedroom co-op which was at $2.2 million.
Weimin’s article: Expenses as Owner of Property in New York
Manhattan’s Supply of Flats
The supply of condos is half that of co-ops. In Manhattan, 70 percent of property stock are rental or mixed-use buildings. This means that the owner owns the entire building and a buyer cannot buy an individual flat. These can be small buildings that are four or five stories high, or they can be large rental buildings owned by REITs that have anywhere from a hundred to 300 apartments. 20 percent of property stock are co-ops and only 10 percent are condos.
Manhattan is a landlocked island and the supply of condos is only ten percent. There are new developments coming up but the supply of new development is very limited, and it doesn’t really impact the supply of condos. Manhattan is an island that has been built up for the past 200 years. Developers can only get land if, for example, there’s an existing parking lot and the developer buys it from the owner to build property. Buildings are side by side and there’s just no more land left to build new property.
This is very different from the average U.S. city where there’s a lot of land, and development just keeps going out farther from the city core.
Weimin’s article: Buying New York Residential Property – Setting Expectations
Deal example: Client’s flat close to World Trade Center, bought several years ago and received multiple offers on sale.
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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