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.

 

 

Contact:  tan@castle-avenue.com

 

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:

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

 

 

Follow On Instagram

 

 

Related Links

Best Manhattan Property Agents

New York Investing Strategies

New Property Projects In Manhattan, How We Pick Winners

About Wei Min

  • Focuses on investors of Manhattan condominiums, interviewed by CNBC, CNN, Wall Street Journal, New York Times
  • Ex-Citibanker, managed $500 million portfolio
  • MBA, University of Illinois at Urbana-Champaign
  • Manhattan resident since 1999. Currently lives in Tribeca with wife and 2 kids
  • 352 burpees in 23 minutes, student of muay thai kickboxing

Contact Wei Min

Recent Blog Posts

Stay Up to Date

Sign up for our newsletter!

Thank you!

We have received your subscription and will be in touch soon!



About Wei Min


  • Focuses on investors of Manhattan condominiums, interviewed by CNBC, CNN, Wall Street Journal, New York Times
  • Ex-Citibanker, managed $500 million portfolio
  • MBA, University of Illinois at Urbana-Champaign
  • Manhattan resident since 1999. Currently lives in Tribeca with wife and 2 kids
  • 352 burpees in 23 minutes, student of muay thai kickboxing

Work With Wei Min

CONTACT US
This error message is only visible to WordPress admins

Error: API requests are being delayed. New posts will not be retrieved.

There may be an issue with the Instagram access token that you are using. Your server might also be unable to connect to Instagram at this time.

Error: API requests are being delayed for this account. New posts will not be retrieved.

There may be an issue with the Instagram access token that you are using. Your server might also be unable to connect to Instagram at this time.