New York Prime Areas
Posted by Wei Min Tan on March 2, 2020
Manhattan, New York, also known as “New York, New York,” is perhaps the most prime real estate in the U.S. The first New York refers to the island of Manhattan while the second New York refers to New York state. Our foreign clients are interested in Manhattan real estate as an investment because of price stability, and they invest in Manhattan for asset diversification purposes.
Wanting the most prime real estate is normal because high-net-worth individuals taking the effort to research and then invest in a different country thousands of miles away would want property values that are stable. Like I always tell clients, Manhattan provides stability, not doubling of prices in a year, which is more attainable in an emerging market.
Contrary to what foreigners think, Fifth Avenue, Wall Street and Central Park are not the measures which determine whether an area is good for investment. These are merely touristy areas. They are also not necessarily the most expensive. We need to look beyond the location and at buildings and apartment lines within a building.
Manhattan, New York is the United States’ prime area
The island of Manhattan (also known as New York, New York) is the most prime area of the United States. Manhattan is home to the most billionaires, the highest prices per square foot, highest rents and highest household incomes. Living in Manhattan, identified by the famous 212 phone area code, is a status symbol.
However, we don’t have the highest number of luxury cars per capita as most Manhattan residents don’t own a car. This is because of the inconveniences of driving and looking for parking.
Prices per sqft in Manhattan
Within Manhattan, certain areas are more expensive in terms of price per square foot or rent. Below is a ranking of the most expensive neighborhoods within Manhattan based on two metrics for residential property.
Keep in mind that these are averages. The most expensive buildings in Manhattan such as One 57 and 15 Central Park West are not in either of these neighborhoods.
|Average 2-bedroom condominium|
|Greenwich Village||$3.192 million|
|West Village||$3,045 million|
|Manhattan average||$1.67 million|
|Average price per square foot|
|West Village||$2,245 per sqft|
Data: Streeteasy, Miller Samuel
It’s not just about price
Getting a super expensive property does not mean it will be a good investment. The key is getting a property in the right building that has high buyer and renter demand and the right apartment within the building.
For example, having a bad facing apartment within a super luxury building is not good. Or having the most expensive apartment in a so-so building in a super desirable area. The micro level – building and apartment within building – is where local expertise becomes invaluable when choosing an apartment.
Weimin’s article, Best Areas to Invest in Manhattan?
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
1) The Sutton, Midtown East. Clients reserved at pre-construction stage with only 10 percent reservation deposit. Represented multiple buyer clients at the $2 million price point. Project took 2 years to complete. Location and luxury finishes make this a good investment. Close to United Nations, Citigroup Center, Blackstone, Blackrock. Rented to quality tenants from the beginning.
Weimin’s article, Buying New Launch Property In Manhattan
2) 200 Chambers Street. Luxury building in Tribeca with premium price and rents. The low carrying costs and high demand make this a good investment. Located next to Whole Foods, World Trade Center, Goldman Sachs headquarters. This apartment faces the building’s zen garden and comes with a washer/dryer within the apartment.
Weimin’s article, Investing in a full service luxury condo in Manhattan
3) Parc Vendome, Midtown West. A value buy pre-war condo but required renovation of the entire apartment. Renovations in Manhattan are more time consuming because of licensing/permits/limited elevator usage etc. The buy decision based on southern exposure with plenty of light and proximity to Central Park. Rented out immediately after renovation project was completed.
Article updated March 2, 2020
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