buyer’s guide to residential property in New York City
It’s been a great year for property in New York, particularly within the “trophy property” segment, which was snapped up by foreign buyers — many from China. Prices skyrocketed and pushed even more buyers out of Manhattan into the “suburban” NYC boroughs, Brooklyn in particular. With low vacancy rates and high demand, it’s still very much a seller’s market — even though there is often room for negotiation.
|Borough||Median sale price, USD||Average rental rate,
Manhattan attracts the richest foreign buyers
Manhattan is leader of the pack: rental rates are twice those of other boroughs and average sale prices are now in the millions of dollars. In 2015, for the first time in nearly 30 years, median prices in Manhattan exceeded the $1 million mark and the average price per square foot also set a new record at $1,645, according to realtor company, Douglas Elliman.
But all is not lost for buyers; recent research shows that sellers are extravagantly overpricing their property, then eventually accepting a discount of 28% on average. Nevertheless, there were actually less sales last year than in 2014 and the market closed with an additional 1% of listed properties. However, real estate in Manhattan now spends less time on the market with only 82 days between listing and sale, compared to 105 days in December 2014.
|Number of bedrooms||Median sale price,
|Average price per sq ft,
Brooklyn confirms its new elite reputation
Brooklyn’s fate is now sealed as a hotspot for the trendy elite and wealthy artists. From
|Q4 2015||Market dynamics||
|Median sale price||$650,000||▲||+11.1|
|Days on market||64||▼||–17.9|
|Median condo price||$725,000||▲|
|Median CO-OP price||$360,000||▲||+12.5|
In fact, 5 neighbourhoods in Brooklyn demonstrated stronger price growth than Manhattan and New York City as a whole over the last fifteen years. The top places for price growth and gentrification in Brooklyn are:
- Park Slope
- Crown Heights
The Bronx and Queens could be next
The Bronx is becoming a secret sweet spot for developers, who pumped $1.8 billion into this
Another noteworthy borough is Queens, which had little commercial property or residential development just a decade ago. Since then, it has blossomed into an
Leigh Stewart, Tranio