Why Some $5 Million Manhattan Apartments Outperform $15 Million Apartments

Posted by Wei Min Tan on July 27, 2026

Conventional wisdom suggests that if a $5 million apartment is a good investment, then a $15 million apartment must be an even better one.

In my experience, that isn’t necessarily true.

After advising buyers and investors in Manhattan for 20 years, I’ve found that the best-performing properties are not always the most expensive.  In fact, there are many situations where a well-selected $5 million condominium has a stronger long-term investment profile than a $15 million trophy residence.

The difference comes down to one word:  Liquidity.

Read about Wei Min’s style in Best Manhattan property agents and Role of a buyer’s broker.

Luxury Is Not the Same as Investment Quality

A $15 million apartment is unquestionably an extraordinary asset.

However, extraordinary assets often have a much smaller buyer pool.

When it comes time to sell or rent out, there’s only a handful of qualified buyers or renters looking for that exact combination of location, layout, size and price.

A $5 million apartment, by comparison, typically appeals to a much broader audience (at least compared to the audience of a $15 million apartment).

That larger buyer pool can translate into faster resale, stronger competition and more resilient pricing during changing market conditions.

For long-term investors, that matters.

Weimin’s article, The 5 Manhattan Condominium Buildings I Would Buy Today

The Importance of Market Depth

Every investment has multiple transactions:

• • The purchase
  • The rent out
  • The eventual sale

Many buyers focus exclusively on the first.

Professional investors think just as carefully about the second and third.

The deeper the market for a particular asset, the easier it is to convert that asset into cash without making significant price concessions.

In Manhattan, market depth generally increases as you move down the price spectrum.

There are substantially more buyers capable of purchasing a $5 million condominium than a $15 million residence.

That creates an important structural advantage.

Scarcity Is Valuable—But Only If Buyers Agree

Scarcity is one of the characteristics I value most.

But scarcity alone is not enough.

A building may have only twenty residences, yet if demand is limited, that scarcity provides little benefit.

The most attractive investments combine scarcity with consistent demand.

That is one reason I often favor buildings with exceptional locations, enduring architecture and broad local and international appeal over properties whose primary selling point is simply extravagance or price.

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.

Rental Demand

Many of our clients intend to rent out their apartment for cash flow.

Even if they don’t intend to rent out, rental demand remains an important indicator of investment quality.

Buildings that consistently attract high-quality tenants generally maintain stronger pricing and broader market acceptance over time.

Rental demand creates another source of liquidity that can help support long-term value.

Buying Prestige Versus Buying Performance

Prestige has value.

Iconic addresses attract attention and can become important parts of a diversified portfolio.

But prestige alone should not determine an investment decision.

The better question is:

Will the next buyer value this apartment as much as I do?

That question often leads to very different conclusions.

My Investment Framework

When evaluating Manhattan condominiums, I focus on four characteristics:

• • Acquisition basis
  • Liquidity
  • Building management
  • Exit – rental or resale

The acquisition basis refers to whether it’s a good value relative to comparables.

A more expensive apartment is not automatically a better investment.

Likewise, a lower-priced apartment is not automatically a bargain.

The objective is to purchase the highest-quality asset at a price that offers the greatest long-term potential.

Weimin’s article, What Makes a Manhattan Apartment Investment Grade? A Framework for Long-Term Value

Final Thoughts

The goal of investing is not to own the most expensive apartment.

The goal is to own the apartment that offers the strongest balance of downside protection, liquidity and long-term appreciation potential.

Sometimes that apartment costs $15 million.

Very often, it costs considerably less.

In my experience, disciplined investing consistently outperforms buying based solely on prestige.

That is why, if I were allocating my own capital today, I would spend less time asking, “What is the most expensive apartment I can buy?”

And more time asking,

“Which apartment offers the best long-term investment characteristics?”

Those are rarely the same question.

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