Manhattan Condo Historical Price Trend
Posted by Wei Min Tan on July 13, 2021
Manhattan Condo Historical Price Trend
Manhattan property (condominium) investment performance. Apartments that can be purchased individually in Manhattan are either Cooperatives or Condominiums. Condominiums are more investor friendly because they do not require board approval and allow owners to rent out as needed. As such, the price per square foot of a Condominium is about 50 percent higher than that of a Cooperative. The below are graphs for Manhattan residential condominiums for price per square foot, median price and sales volume.
Manhattan condo average price per square foot: Graph above shows historical appreciation trend of Manhattan residential condominiums in terms of average price per square foot. In 1999, the average price per square foot was $480. Prices increased through 2008, then declined in 2009 and 2010 because of the U.S. recession. From 2008 to 2010, the decline was about 15 percent, when rest of the country went down by 35 percent.
After the recovery, price continued increasing until 2017. Then in 2018, we experienced a correction due to changes in tax law, global trade wars and increasing interest rates. 2017 – 2019 was a downturn period for Manhattan property and in Q2’2020 the Manhattan market was hit hard by the COVID-19 virus. Price came down in Q1’2021 to $1,714 per sqft and this period represented the pandemic deals. In Q2’2021, prices increased to $1,921 per sqft, driven by low mortgage rates, pent up demand from 2020 and reopening of the New York economy.
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Deal Example: 305 E 51 St, Halcyon. Buyer client reserved property at pre-construction stage. Completed 2 years later and rented out with strong cashflow to owner since then. Property is close to the United Nations, Citigroup Center, Blackstone, Blackrock, Chase Bank.
Weimin’s article, Risks with buying into new property projects in Manhattan
Manhattan condo median price: Graph above shows the historical median price of a Manhattan residential condo increasing from $425,000 in 1999 to $1.7 million in 2017. During the downturn period of 2017-2019, median price declined to $1.588 million. Median price in Q1’2021 was $1.55 million and increased to $1.65 million in Q2’2021.
Deal Example: Represented buyer client at Sixty Four Condo in the Upper East Side. Top amenity building in the 60s with an amazing roof deck (pictured), which is a WOW factor for tenants. The new Q subway train extension benefited property value in the area. This was a new development and reserved at the pre-construction stage.
Weimin’s article, How to buy new property in Manhattan
Manhattan condo number of transactions: Graph above shows the trend for number of transactions per year, from 1999 to 2019. The peak was 7,000 transactions in 2007, the height of the market. 2020 was Covid year and the real estate market closed down for 3 months, hence the deal volume represented 9 months of activity.
Deal Example: Client’s investment condo at 88 Greenwich, 35th floor waterview one bedroom apartment facing south. A high floor, south facing, water view is the most desirable view in Manhattan. While most water view apartments are located further from the subway, this building has a subway station right in front of it. One block from World Trade Center. Client took over tenancy and property has never been vacant since purchase.
Weimin’s article, Interview with Aidan Booth, online entrepreneur and property investor
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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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