The average apartment price in Manhattan hit a record $1.95 million in the fourth quarter, as high-end real estate continued to defy volatile stock markets and slowing growth overseas.
Real estate sales grew 9 percent in the quarter compared to the same quarter last year, according to real estate firm Douglas Elliman. But prices are soaring even higher: The average sales price jumped 12 percent, while the median sales price hit a record $1.15 million and the price per square foot hit a record $1,645.
The price strength shows that Manhattan real estate remains a financial high ground for the world’s wealth as they seek safety from volatile financial markets and the slowdown in China.
“The (Manhattan) market continues to be a safe haven,” said Jonathan Miller, president of Miller Samuel, an appraisal firm. “The volatility and government intervention in China will just incentivize more outflows.”
Still, Manhattan real estate remains a tale of two markets. The condo market, driven in part by new construction favored by overseas buyers, is on a tear, with average sales prices jumping 25 percent over the past year to $2.66 million, and the price per square foot up 26 percent to $1,959. For just new construction, average sales prices hit $3.29 million or $2,210 a square foot.
Yet the co-op market, which is almost exclusively U.S. buyers and largely in older buildings, is selling for an average of $1.28 million or $936 per square foot.
via CNBC
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Alfonso Esparza
trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
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