Average Manhattan, New York Apartment Prices
Posted by Wei Min Tan on November 7, 2023
Average Manhattan apartment prices are based on whether the apartment is a condo or coop. Price per square foot of a condo is higher than for a coop because: a condo owner gets real estate title, does not require board approval and can rent out the apartment as desired without limitation.
Average Manhattan, New York Apartment Prices (Condo)
The average sale price for a condo ranges from $967,979 for a studio apartment to $10,620,414 for 4+ bedroom apartments. Meanwhile, the average price per square foot ranges from $1,380 for a studio to $2,959 for 4+ bedroom apartments.
As apartments get larger, the price per square foot increases. Why? Generally, it’s because the larger apartments are on higher floors and have better views. Therefore, larger apartments get higher price per square foot.
Client’s large 3-bedroom apartment located opposite Goldman Sachs (the green building). We targeted tenants wanting more space post Covid, rented out in 1 week.
Average Manhattan, New York Apartment Prices (Co-Op)
The average price per square foot for a co-op is roughly 50 percent lower than that of a condo. Average sale price for a co-op ranges from $482,161 for a studio to $5,191,865 for a 4+ bedroom apartment. The average price per square foot ranges from $882 to $1,702.
The trend is similar with condos and co-ops; as size of apartment increases, the average price per square foot increases as well.
Number of Sales by Size
2020 was Covid year and the market was shut down for three months. The bottom of the market during the Covid period was in July of 2020. The market recovery started in 2021 and we had record high sales volume. Sales volume in 2021 was higher than in 2007 driven by pent up demand, low mortgage rates and overall optimism as the vaccines came out.
We’re in a Buyer’s Market again
Starting the second half of 2022, the sale market weakened significantly. Because of inflation, the Federal Reserve increased interest rates multiple times. Commensurately, mortgage rates more than doubled. The 30-year fixed mortgage is currently between 7 to 8 percent when it used to be 3 percent in early 2022.
Buyers became renters because of the increase in mortgage payments, hence decreasing demand in the sale market. Meanwhile, the rental market is at record levels with rents increasing by double digits compared to a year ago.
The current market is favorable to buyers who are all cash (don’t require financing).
Weimin’s article, Is now a good time to invest in Manhattan property?
Deal example: Client’s Manhattan apartment close to World Trade Center bought a few years ago. Multiple offers at eventual 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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