New York Apartment Prices Q1, 2022

Posted by Wei Min Tan on April 25, 2022

New York property report:  Q1’2022 Manhattan condo market

 

Q1’2022 condo sales volume was up more than 50 percent vs a year ago.  This marks the highest first quarter sales in 15 years of tracking.  Various metrics show that we are now back to pre-pandemic levels.   The strong sales numbers was driven by the (still) low mortgage rates although rates have been rising since 2021, 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 March 2022 was 1.89 percent, compared to 11.25 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 Q1 sales volume in 33 years (overall) and 15 years (condos) 

For the overall condo and coop market, sales volume in Q1 increased by 46 percent compared to prior year.  It was the highest first quarter sales volume in 33 years of tracking.  The condo market had the same trend with sales volume increase of 51.7 percent, highest condo Q1 volume in 15 years.

 

 

Contact:  tan@castle-avenue.com

 

 

Key Point 2:  Supply decreased for third straight quarter   

Supply of available condos/coops for sale was at 6,906 units, down 4.4 percent compared to prior year.  Specific to condos, there was 6.2 months of available condo inventory in Q1’2022, compared to 9.6 months a year ago.  Starting this Spring, supply has been picking up, but the overall trend is still a shortage of inventory.  For context, supply peaked at around 9,500 units and 13.5 months during the end of 2020.

 

 

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 

Q1’2022 continues the trend towards larger apartments as people want more space post Covid.  The $2 million to $5 million segment experienced the largest growth.  The average size of a resale apartment was 1,228 sqft, 6 percent larger than the first quarter decade average.

 

 

New York (Manhattan) Q1, 2022 Condo:

Sales volume surged 51.7 percent compared to prior year, representing the highest level of sales in 15 years.

 

Average price                        $2.85m (+18.1% vs prior year)

Avg price per SF                    $1,992 (+16.2%)

Number of sales                  1,647 (+51.7%)

Listing inventory                    3,420 (-2.0%)

Listing discount                    4.6% 

Days on market                     135 (-15.1%)

Months of supply                  6.2 months (-35.4%)

 

 

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 March 2022:

The rental market is driven by renters moving back into Manhattan.  This is because companies now require people back at the office, although not everyday.  Most companies still allow 1-2 days working from home.

 

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 moved 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                        $4,638 (+15.9% vs prior year)

Rent per sqft                         $75.05 (+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 89.9 percent compared to prior year as buyers took advantage of the last remaining deal opportunities.  Listing discount was 4.9 percent, a decrease from 8.6 percent a year ago.

 

Average price                         $3.36m (+2.9%)

Avg price per SF                   $2,295 (+6.6%)

Number of sales                  543 (+89.9%)

Listing discount                      4.9%

Months of supply                   6.9 (-17.9%)

Share of market                      15.1%

 

Data Source:    Miller Samuel 

 

Article updated April 25, 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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