New York Apartment Prices Q4, 2021

Posted by Wei Min Tan on January 6, 2022

New York property report:  Q4’2021 Manhattan condo market

Q4’2021 sales volume was the highest in 32 years, since 1989.  Various metrics show that we are now back to pre-pandemic levels.   The strong sales numbers was driven by low mortgage rates, pent up demand and overall optimism from reopening of the economy.

 

Meanwhile, the rental market is also strong as rental price per sqft increased 21 percent.  Vacancy rate for November 2021 was 2.09 percent, compared to 6.14 percent a year ago.  This is because of people moving back into Manhattan as companies no longer allow full time work-from-home.

 

 

Key Point 1:  Highest sales volume since 1989 

For the overall condo and coop market, sales volume in Q4 increased by 86 percent compared to prior year.  The condo market had the same trend with sales volume increase of 82 percent.

 

 

Contact:  tan@castle-avenue.com

 

 

Key Point 2:  Supply decreased, fastest market in 6 years   

Supply of available condos/coops for sale was at 6,207 units, down 25 percent compared to prior year.  There was 5.7 months of available condo inventory in Q4’2021, compared to 13.5 months a year ago.  Q4’2021 was the fastest market in 6 years.

 

 

Deal Example:  Investor client’s condo at Devonshire House, one of Manhattan’s distinguished prewar condos designed by Emery Roth.  Rented out in 2 days after receiving multiple applications.  This was our prewar condo investment strategy and it worked out tremendously well.  

 

Key Point 3:  Growth in $2 million to $5 million price segment 

In Q4’2021, the $2 million to $5 million segment experienced the largest growth.  The average size of an apartment was at 1,234 sqft, 7.5 percent higher than in 2019, because of demand for larger sized apartments post Covid.

 

 

New York (Manhattan) Q4, 2021 Condo:

Sales volume surged 82 percent compared to prior year, representing the highest level of sales in 32 years.

 

Average price                        $2.74m (+1.6% vs prior year)

Avg price per SF                    $1,989 (+4.8%)

Number of sales                  1,642 (+82%)

Listing inventory                    3,125 (-22.8%)

Listing discount                    6.5% 

Days on market                     150 (+12.8%)

Months of supply                  5.7 months (-57.8%)

 

 

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 November 2021:

The rental market is driven by renters moving back into Manhattan.  This is because companies have started calling people back to the office.  Some 3 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.  Rental prices dropped 25 percent as inventory and vacancy rate shot up.

 

Currently, thousands are moving back into Manhattan and there is not enough rental supply.  Our clients’ investment condos would have 10 viewings a day and multiple applications at above asking price!

 

Average Rent                        $4,412 (+17.8% vs prior year)

Rent per sqft                         $71.24 (+20.6%)

 

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 out immediately after closing.  

 

Weimin’s article, Buying a vacation home in Manhattan

 

New Development:

New development sales increased 103 percent compared to prior year as buyers took advantage of the last remaining deal opportunities.  Listing discount was 7 percent, a decrease from 7.5 percent in Q3 as developers became less negotiable.   Transactions skewed to smaller sized sales which explains the decrease in average price.

 

Average price                         $3.42m (-10.6%)

Avg price per SF                   $2,346 (flat 0%)

Number of sales                  594 (+103%)

Listing discount                      7.0%

Months of supply                   6.0 (-34.8%)

Share of market                      16.7%

 

Data Source:    Miller Samuel 

 

Article updated January 6, 2022

 

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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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

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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

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