Aerial view of Manhattan, New York.
New York property broker Corcoran Group recently conducted a survey during the first quarter, showing real estate prices in Manhattan continuing to set record highs. For the first time, the average sale price surpassed the US$2 million mark, and median prices jumped an impressive 22 percent on year.
Poomipak Julmanichoti, Managing Director of Plus Property, Corcoran’s Thai partner, noted that Manhattan’s overall property market is sound, although it is seeing a slight slowdown after years of trending upwards. The slowdown is due to condominium units priced below US$1 million becoming scarce, and this has led to a marginal drop in sales.
These units have been a key factor for sales growth in recent years. Furthermore, the occupancy rate in Manhattan remains high at 97 to 98 percent, according to a Douglas Elliman report.
Another positive sign for the market is that the total number of days each listing spent on the active market before an agreement was made has dropped. It fell from 101 days in 2015 to 88 days this year.
Manhattan’s rental market also appears to be stable, revealed the report. The vacancy rate rose by 0.44 percent year-on-year, while the average rental price dropped for the first time in two years. Rental occupancy also remains high at 97 percent.
“Condominiums in Manhattan had shorter days on market, a positive sign that signified demand was higher than supply. The most popular area in the first quarter of this year is downtown, reflected in the highest number of closed sales, the highest median price and the highest average sale price per sqm,” said Poomipak.
“On the rental market side, downtown was also the area with the highest median rent. The buyers these days only look to invest in condominiums in prime locations, and Manhattan condominiums are appealing and full of plus points both for long-term investments and for living.”
This article was first published on DDproperty.com, Thailand’s leading property site.
