New York Apartment Prices Q2, 2020
Posted by Wei Min Tan on July 10, 2020
New York property report: Q2’2020 Manhattan condo market
COVID-19 shut down the Manhattan property market from mid March until almost the end of Q2. On June 22, Manhattan real estate reopened as part of “NYC’s Phase 2 Reopening.” The below are key metrics for the Q2’2020 Manhattan real estate market.
Key Point 1: Sales volume down 58 percent
For the overall condo and coop market, sales volume in Q2 declined by 54 percent compared to year ago. This is because in Q2, the market was shut down hence preventing property viewings, contract signings and closings. Specific to condos, sales volume was down 58 percent. This is spot on to my prediction of a 60 percent sales volume decline from my April 16 article, COVID-19 in Manhattan, current situation. Q2 marks the largest sales volume decline of the past 30 years.
Key Point 2: Pent up supply and demand
Sellers have been wary of listing property for fear of strangers visiting their homes (and bringing the virus). As result, listing inventory declined by 15.8 percent for condos. Commensurately, buyers stopped viewing property from around mid March because of the lock down. There is pent-up supply and pent-up demand. During the week of June 22, the first week of reopening, new listings went up by 500+ properties that week alone. We expect more inventory to get listed and buyers to slowly come back into the market.
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.
Key Point 3: Listing discount 8.4 percent, months of supply +100%
Listing discount in Q2, the different between contract price and listing price, was 8.4 percent. This reflects negotiability and is the highest in more than 5 years. Contract signing was lowest during the shut down period, and buyers who entered contract then got the largest discounts.
The months of supply, reflecting how many months it takes to sell current inventory, was 16 months, a 100% increase from prior year.
New York (Manhattan) Q2, 2020 Condo:
Negotiability, reflected in the listing discount of 8.4 percent, was the highest in 5 years. Number of sales declined by 58.2 percent due to the market shut down.
Average price $2.692m (-5.1% vs prior year)
Avg price per SF $2,014 (-3.0%)
Number of sales 616 (-58.2%)
Listing inventory 3,291 (-15.8%)
Listing discount 8.4%
Days on market 128 (-3.0%)
Months of supply 16 months (+100%)
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 areas is transforming and 88 Greenwich will benefit from it.
Residential Rents June 2020:
Average Rent $4,032 (-4.8% vs prior year)
Rent per sqft $65.00 (-5.7%)
New development sales volume fell by 74.8 percent, the largest decline in sixteen years. Listing discount increased to 8.9 percent.
Median price $2.660m (+8.7%)
Avg price per SF $2,767 (+8.1%)
Number of sales 139 (-74.8%)
Listing discount 8.9%
Months of supply 20.3 (+269%)
Sales share of market 10.2%
Data Source: Miller Samuel
Article updated July 10, 2020
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
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