Manhattan Property Market Update

Posted by Wei Min Tan on July 9, 2024

The Manhattan property market is one of the most prized property markets in the world.  Our clients invest in Manhattan property for asset diversification and price stability.  Manhattan is a prime market where prices are high, appreciation is stable and rental yields are low but predictable.  Foreigners investing in Manhattan, New York property is a normal and daily event.  There are no additional stamp duties imposed on foreign buyers.

Unfortunately, the Manhattan market has experienced a big drop in sales volume since mid 2022 because of the Federal Reserve’s interest rate hikes to combat inflation.  The Fed’s rate hikes resulted in mortgage rates going to the 6 to 7 percent range when it used to be in the 3 percent range for many years.

Read Wei Min’s article: Foreigner Buying Property in New York, 8 Questions That Matter

Read about Wei Min’s style in Best Manhattan property agents and Role of a buyer’s broker.

Key points of this Manhattan Property Market Update

Sales volume:  In the condo market,  sales volume in Q2’2024 increased by 48.3 percent compared to prior quarter and 5.7 percent compared to prior year.  This is the first annual increase after eight quarters.

Cash buyers:  The market share of cash buyers in Q2’2024 was at 62.3 percent.  This is because buyers needing financing are on hold while cash buyers came in to take advantage of the slow market.

Price per sqft and median price:  In the condo market, price per sqft is at $1,981 while median price at $1.732 million.  Price per sqft is lower than the peak in 2017 which was at $2,149.  Median price is still lower than 2017.

Manhattan Condo Market’s Key Metrics

The most recent Q2’2024 data from Miller Samuel shows average price per square foot for a Manhattan condo at $1,981.  This is a 2.2 percent decrease compared to a year ago.  Number of sales was at 1,152, a 5.7 percent increase from a year ago.  Median sales price was at $1.732 million, or 3.4 percent higher than a year ago.

Read Wei Min’s article: New York (Manhattan) Property Investing Strategies

Manhattan Condo Historical Price Trend

Data: Miller Samuel

The chart above shows the historical appreciation trend for Manhattan condos, with significant recession events circled in red.  Prices tend to appreciate over the long term, with dips during recessions.  Price per square foot was $480 in 1999, increasing to $1,981 in Q2’2024.

Prices at New Developments

New developments refer to buying a brand-new property from the developer.  These are usually sold 1–2 years before completion.  The buyer puts down a reservation deposit, waits for construction, and balance is due at eventual completion.  The average sales price of a new development was $3.13 million, 12.1 percent lower than a year ago.  Number of sales was 342, or 15.2 percent lower than a year ago.

Manhattan Rental Prices

The most recent May 2024 data shows average rental price at $5,147, 1.1 percent higher than prior month but 4.3 percent lower than prior year.  Number of new leases was 7,085, 40.5 percent higher than a year ago.  Manhattan has perhaps the lowest residential vacancy rate in the U.S., at 2.27 percent.

Is now a buyer’s market or seller’s market?

We are currently in a neutral market as shown in the chart above.  The two most significant buyer’s markets were during the Lehman collapse in 2008/2009 and Covid, which hit Manhattan in early 2020.

Read Wei Min’s article: Buying property in New York to rent out

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