Manhattan, the U.S’s most prime real estate
Posted by Wei Min Tan on March 13, 2022
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. 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 and expensive real estate in the United States. Within the U.S., 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 90 percent of Manhattan residents don’t own a car. This is because of the inconveniences of driving and looking for parking.
Prices in Manhattan
The average price per sqft in Manhattan for a Condominium is $2,074 while the average of a Coop is $1,225. A Condo is more expensive than a Coop because a condo owner gets real estate title, does not require board approval to buy or sell and can rent out the apartment as needed. With a Coop, the Coop board can reject a transaction without reason and there are limitations on renting out.
A one bedroom condo is roughly between $800K to $2.5 million while a two-bedroom condo roughly $2 million to $4 million.
Keep in mind that these are averages. Ultra luxury buildings like One 57 and 15 Central Park West are priced at $6,000 and $8,000 per sqft respectively.
Weimin’s article, Best type of investment property in New York
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, How to buy property in New York
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 at premium rents 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.
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