Manhattan, New York Property Historical Price Trends
Posted by Wei Min Tan on October 8, 2021
Manhattan Condominiums and Cooperatives
The Manhattan property inventory consists of 70 percent rental buildings, 20 percent Cooperative apartments and 10 percent Condominium apartments. Cooperatives and Condominiums are units that can be purchased individually (as opposed to needing to buy the whole building). Below are graphs for Condominiums and Cooperatives blended mix for price per square foot, median price and sales volume.
Data: Miller Samuel Appraisers
Average price per square foot: Graph above shows historical appreciation trend of Manhattan condominiums and cooperatives in terms of average price per square foot. In 1997, the average price per square foot was $328. 2017 set the new price record at $1,775 per sqft, then decreased to $1,657 in 2019. The downturn between 2017 to 2019 was firstly due to the natural real estate cycle and specifically because of an oversupply of high end apartments, a new federal tax bill that decreased interest deductibility and global trade wars.
In 2020, Manhattan was hit hard by the COVID-19 virus, and prices came down further to $1,605. Q1’2021 saw a further dip as these reflect deals struck during Covid. The market has been picking up since March 2021. Q3’2021 had the highest sales volume in 32 years, driven by the improving economy, high vaccination adoption and low mortgage rates. Prices are still lower than pre-pandemic but sales activity has been tremendously. Price per sqft in Q3 was $1,523.
Note that the average price per square foot of a Manhattan condominium in Q3’2021 was $1,881, representing a significant premium over the condo/coop average shown in the graph.
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Deal Example: Investor client’s 3-bedroom condo in luxury Tribeca building. Great open view overlooking the Battery Park Ballfield. We targeted 3 bedroom condos because of the market’s need for more space post pandemic. Rented out in 1 week.
Weimin’s article, Buying Manhattan apartment to rent out as diversification strategy
Median price: Graph above shows the historical median price of a Manhattan condo/coop increasing from $239,000 in 1997 to $1.11 million in Q3’2021. While the graph shows the blended average of condo/coop, note that the median price of a Manhattan condo in Q3’2021 was $1.61 million.
Deal Example: Investor client’s prewar West Village condo with high ceilings, amazing open views and prewar charm. These wow factors are highly appealing to potential tenants.
Weimin’s article, Investing in West Village.
Number of transactions: Graph shows the trend for number of transactions per year, from 1997 to 2020. The peak was 13,430 transactions in 2007, the height of the market, while the valley was 7,048 transactions during Covid 2020. Note that we had 3 months of lockdown in 2020 and the sales volume for 2020 only represents 9 months of activity.
Learn more New property projects in Manhattan, how we pick winners
Deal Example: Client’s condo at 111 Murray Street in Tribeca. Reserved the unit at pre-construction, waited two years for completion after which market price increased 20 percent. The green building opposite is the Goldman Sachs headquarters and one of the reasons we decided to pursue this unit.
Weimin’s article, How to invest in new launch property in Manhattan
What We Do
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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Wei Min Tan is a Manhattan, New York property broker focusing on global investors. He has been interviewed by CNBC, CNN, New York Times and The Wall Street Journal on the subject of investing in Manhattan property. Wei Min can be reached at tan@castle-avenue.com
Related Links:
Foreign Buyer Guide To New York Property
