Steady sales and increased stock give New York property market much-needed boost
Manhattan real estate sales increased by 5% in Q4 2015, marking one of the most active years in the local property market.
There was also a much-needed increase in inventory with the number of listed units rising by 14% to more than 5,000 compared to Q4 2014.
The figures, published by New York real estate company Corcoran Group, revealed how the growth in inventory led to an increase in months of supply, up 8% year over year to 4.1 months, although it was still below the six-to-nine month equilibrium range.
Ray Hogan, managing director of Oryx World Portfolio, which specialises in the purchase, sale and lease of properties in New York, welcomes the market growth.
He says, “Based on our research, the New York market has seen consistent growth over the years, and even after the economic crisis it has shown its strength by gaining back the property value that was lost during this period.
“This iconic city and financial capital has incredible market stability and high global demand not only for buyers but also for tenants, making New York a desired destination for Oryx World Portfolio investors,” he adds.
Pricing also hit new highs in Q4 2015 due to growth in closing prices across all apartment types. The median Manhattan sale price reached a record high, hitting $1.1m, up 16% from the previous high set in Q3 2015.
Average price per square foot also reached a record high, increasing 5% year over year to $1,736. All bedroom sizes had increases in median price, and three-plus bedroom residences led the way with a 24% annual increase to $3.888m. One-bedroom residences had the second largest increase, up 11% to $810,000.
Hogan adds, “Based on market trends, we encourage investors to purchase in the early stages for all new developments as dramatic increases have been seen, reaching a record $2m in median prices for the last quarter. Since 2009, new development median prices have risen 83%, the most of any property type in New York.”
The luxury threshold, which marks the entry point into the luxury category, was $3.991m, 19% higher than Q4 2014. Due to a decrease in closings, however, pricing within the luxury market was mixed.
The median price for a luxury sale in Q4 2015 was $5.250m, up 2% from Q4 2014. However, the average price for a luxury sale decreased, down 15% to $6.854m.