New York Apartment Prices Q2, 2021
Posted by Wei Min Tan on July 12, 2021
New York property report: Q2’2021 Manhattan condo market
The overall theme for Q2’2021 was a surge in sales volume as buyers rush back into the market driven by low mortgage rates, the last remaining Covid discounts and reopening of New York City. The Covid discount was between 7 to 9 percent in Q1 but has decreased to between 3 to 5 percent in Q2. Sales volume increased 39.1 percent compared to Q1 and 151.8 percent compared to prior year. Meanwhile, the rental market is also picking up as people move back into Manhattan because employers are calling people back into the office.
Key Point 1: Sales volume up
For the overall condo and coop market, sales volume in Q2 increased by 39.1 percent compared to Q1 and 151.8 percent compared to prior year. The condo market had the same trend with increases of 48.8 percent and 162.3 percent respectively. As a broker, I am seeing first hand as buyers come back into the market and open houses have tremendous traffic during the weekends. Very different compared to 2020.
Key Point 2: Inventory inched up
Inventory in Q2 at 7,880 apartments for sale for the total condo/coop market is 9 percent higher than in Q1. This is a welcome relief for buyers but still low by historical levels. We have been experiencing a decline in supply as 300+ contracts are signed weekly, a record level.
Deal Example: Investor client’s condo at 200 Chambers Street, luxury building in Tribeca with premium price and rents. Purchased at approx $1.5 million. 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 Tribeca property
Key Point 3: Months of supply down to 6.9 months
In Q2’2021, inventory represented 6.9 months of supply. Note that the 20-year average is 8.7 months. Q2 months of supply declined 21 percent compared to Q1. Months of supply reflects how many months it takes to sell current inventory.
New York (Manhattan) Q2, 2021 Condo:
Sales volume surged 48.8 percent compared to Q1 and 162 percent compared to prior year, representing the highest rate of increase in more than 30 years.
Average price $2.63m (-1.9% vs prior year)
Avg price per SF $1,921 (-4.6%)
Number of sales 1,616 (+162%)
Listing inventory 3,916 (+19%)
Listing discount 6.7%
Days on market 179 (+39.8%)
Months of supply 7.3 months (-54.4%)
Deal Example: Client purchased this unit at 88 Greenwich Street. 17th floor with double height ceiling and water views. One block from World Trade Center means strong appreciation potential. There are 4 new residential condos coming up in the area, all with much higher prices per square foot. The area is transforming and 88 Greenwich will benefit from it.
Weimin’s article, Investing in a Manhattan penthouse apartment
Residential Rents June 2021:
The rental market is recovering as renters move back into Manhattan. This is because companies have started calling people back to the office. Some 2 days a week, some full time.
During Covid, the rental market was hit much worse than the sale market. Offices all had work-from-home policies. As a result, many tenants didn’t renew leases and moved out of Manhattan temporarily, to save on rent and because much more space is needed when everyone is working/schooling from home. The rental market dropped 25 percent as inventory and vacancy rate shot up.
Average Rent $3,922 (-2.7% vs prior year)
Rent per sqft $64.97
Deal Example: Client’s new condo in Hudson Square next to the new Google downtown headquarters (the new glass building on the left). We booked at pre-construction, rented in 2 weeks.
Weimin’s article, Buying a vacation home in Manhattan
New development sales increased 19 percent compared to Q1 and 145 percent compared to prior year as buyers take advantage of the last remaining deal opportunities. Listing discount is 11.2 percent as developers are still negotiating and offering concessions.
Average price $3.84m (-10.5%)
Avg price per SF $2,581 (-6.7%)
Number of sales 341 (+145%)
Listing discount 11.2%
Months of supply 8.5 (+1.2%)
Share of market 10%
Data Source: Miller Samuel
Article updated July 12, 2021
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