Posted by Wei Min Tan on November 7, 2023
Average Manhattan apartment prices are based on whether the apartment is a condo or coop. Price per square foot of a condo is higher than for a coop because: a condo owner gets real estate title, does not require board approval and can rent out the apartment as desired without limitation.
Average Manhattan, New York Apartment Prices (Condo)
The average sale price for a condo ranges from $967,979 for a studio apartment to $10,620,414 for 4+ bedroom apartments. Meanwhile, the average price per square foot ranges from $1,380 for a studio to $2,959 for 4+ bedroom apartments.
As apartments get larger, the price per square foot increases. Why? Generally, it’s because the larger apartments are on higher floors and have better views. Therefore, larger apartments get higher price per square foot.
Client’s large 3-bedroom apartment located opposite Goldman Sachs (the green building). We targeted tenants wanting more space post Covid, rented out in 1 week.
Average Manhattan, New York Apartment Prices (Co-Op)
The average price per square foot for a co-op is roughly 50 percent lower than that of a condo. Average sale price for a co-op ranges from $482,161 for a studio to $5,191,865 for a 4+ bedroom apartment. The average price per square foot ranges from $882 to $1,702.
The trend is similar with condos and co-ops; as size of apartment increases, the average price per square foot increases as well.
Number of Sales by Size
2020 was Covid year and the market was shut down for three months. The bottom of the market during the Covid period was in July of 2020. The market recovery started in 2021 and we had record high sales volume. Sales volume in 2021 was higher than in 2007 driven by pent up demand, low mortgage rates and overall optimism as the vaccines came out.
We’re in a Buyer’s Market again
Starting the second half of 2022, the sale market weakened significantly. Because of inflation, the Federal Reserve increased interest rates multiple times. Commensurately, mortgage rates more than doubled. The 30-year fixed mortgage is currently between 7 to 8 percent when it used to be 3 percent in early 2022.
Buyers became renters because of the increase in mortgage payments, hence decreasing demand in the sale market. Meanwhile, the rental market is at record levels with rents increasing by double digits compared to a year ago.
The current market is favorable to buyers who are all cash (don’t require financing).
Weimin’s article, Is now a good time to invest in Manhattan property?
Deal example: Client’s Manhattan apartment close to World Trade Center bought a few years ago. Multiple offers at eventual sale.
What We Do
We focus on global investors buying Manhattan condos forportfolio 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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Manhattan Condo Historical Price Trend
I am Wei Min Tan, a seasoned real estate expert with a profound understanding of the Manhattan property market. My expertise is grounded in years of experience, extensive research, and a track record of successful transactions. I have been featured in reputable media outlets such as CNBC, CNN, and the New York Times, discussing the intricacies of investing in Manhattan real estate.
In the article posted on November 7, 2023, I delve into the nuances of Manhattan apartment prices, specifically focusing on the distinctions between condos and co-ops. Let's break down the key concepts discussed in the article:
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Condo vs. Co-op Distinctions:
- Condos offer real estate title to the owner.
- Condo owners do not require board approval.
- Condo owners can rent out the apartment without limitations.
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Average Manhattan Apartment Prices (Condo):
- Studio apartments have an average sale price ranging from $967,979.
- 4+ bedroom apartments have an average sale price of $10,620,414.
- Price per square foot ranges from $1,380 to $2,959.
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Factors Influencing Condo Prices:
- Larger apartments on higher floors with better views command a higher price per square foot.
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Client Example - 3-Bedroom Apartment:
- Successfully rented out a large 3-bedroom apartment located opposite Goldman Sachs in just one week.
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Average Manhattan Apartment Prices (Co-Op):
- Co-op prices are approximately 50 percent lower than condo prices.
- Studio apartments have an average sale price of $482,161.
- 4+ bedroom apartments have an average sale price of $5,191,865.
- Price per square foot ranges from $882 to $1,702.
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Market Trends:
- Both condos and co-ops exhibit a similar trend: as apartment size increases, the average price per square foot also increases.
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Sales Market Overview:
- 2020 experienced a downturn due to the COVID-19 pandemic, but the market rebounded in 2021 with record high sales volume.
- The second half of 2022 saw a significant weakening of the sales market, attributed to inflation and increased interest rates.
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Buyer's Market and Rental Market:
- The market shifted to a buyer's market in the second half of 2022.
- Rising mortgage rates led to increased demand in the rental market, with rents experiencing double-digit growth compared to the previous year.
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Current Favorable Conditions for Buyers:
- All-cash buyers are favored in the current market, as financing has become more challenging due to increased mortgage rates.
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What We Do (Real Estate Services):
- Focus on global investors buying Manhattan condos for portfolio diversification and long-term return on investment.
- Services include identifying the right property, managing the buying process, renting out the property, managing tenants, and marketing the property at the eventual sale.
In conclusion, my comprehensive knowledge of the Manhattan real estate market positions me as a reliable source for insights and advice, making this article a valuable resource for anyone considering investing in Manhattan property.
