If there were any doubts as to whether New York City is still a good place for investors to park their cash, the latest report from PropertyShark.com should dispel all fears. Prices have continued climb skywards, with the top 50 most expensive neighborhoods leading the charge. Out in front, this year, as last, is Tribeca with a median sales price increasing by 24 percent over 2016 Q2 to register at an eye-watering $5.175 million.
However, even more striking than those numbers was the Financial District’s staggering 78 percent 12 month increase pushing it up to sixth place in NYC’s top ten with a median price of $1.9 million. It doesn’t end there, however. Fort Green in Brooklyn recorded a remarkable 151 percent yearly growth. The median price in the trendy neighborhood is now $1,135,000 from $451,612 a mere twelve months ago. And people said it was expensive then!
So what’s behind these sky-rocketing numbers? One word. Development. Buyers are passionate about new construction and favor it far more than second hand home sales even if the numbers keep reaching upward. Also, with so many buildings being completed around the same time and many condos in them selling within the same quarter, the numbers have reflect a clustering of sales. The reality is that many of the new condos went into contract a couple of years ago, before construction was completed and have only closed recently when the properties were finished. Tribeca, in particular, has been a hive of construction for a while with gorgeous properties such as 70 Vestry (not yet completed) wallowing in scenic views, high end amenities and stellar construction, making it one of the go to places for celebrities willing to pay prices prices that are second only to their high profiles.
Elsewhere in Tribeca buildings such as the Four Seasons Private Residences, (completed) located at 30 Park Place, has one bedroom apartments priced from just under $3 million (a 6 bedroom at just over $32 million is currently under contract according to StreetEasy) and the futuristic 56 Leonard Street (completed) has one bedrooms from $3.175 million (a 4 bedroom is under contract $29.5 million according to StreetEasy).
Tribeca certainly seems to be the playground of the rich and famous. Hardly a week seems to go by without news of some celebrity/high net worth individual’s sale or purchase of a property there. Nearby, in the West Village too, there is always news of splashy transactions that keep the Lower Manhattan market sizzling. Generally, though the median price of Greenwich Village sales dropped from $2,038,260 to $1,400,000 over the last year. This probably had little to do with the area becoming less desirable but rather because of the increased availability of new condos nearby. It’s also something of a warning sign that without a constant supply of new inventory, a hot market often subsides. It’s good for flippers or those looking to cash out to bear in mind — the demand in Manhattan is there and price is often not an issue, as long product is top notch.
The Financial District has not only benefitted from the increased prices in Tribeca but because many commercial buildings have been rezoned residential, it has sparked a flurry of condo sales.
In Fort Greene, Brooklyn, which appears to have been under construction for the best part of two decades, large scale developments such as 300 Ashland Place which is a rental building, has pushed up not only other rents in the area but also sales of condos and multi family buildings in this brownstone rich neighborhood.
Manhattan, though, remains the driver for all NYC real estate. With a slew of ever more sophisticated and luxurious developments hitting the market this year, including mega projects such as Hudson Yards and developers forever planning new projects to keep the momentum up, prices continue to climb north not only in Manhattan itself but Brooklyn, Queens and New Jersey. When will it all end you say? Apparently no time soon.