Despite National Slowdown, Average NYC Condo/Co-op Prices Go Up 34 Percent
- May 12, 2008
By Anuradha Kher, Online News EditorNew York– The average sales price of condos and co-ops in New York City rose 34 percent to $994,000 in the first quarter of 2008 compared to the same time last year, according to a report recently released by ResidentialNYC.com, a Web portal managed by The Real Estate Board of New York (REBNY). “The prices have gone up due to Manhattan’s surging sales prices, which are at all-time highs,” Steven Spinola, REBNY president, tells MHN. “There has been a significant increase in prices in high-end neighborhoods with luxury products, which come with all kinds of bells and whistles. In case of other properties, prices have gone down or remained stable. But there hasn’t been a major change.”Spinola says that the report shows that Manhattan’s luxury market for high-end properties continues to remain untouched by the slowing national economy.With the number of permits for new construction down by 46 percent across all the boroughs and by 66 percent in Manhattan, Spinola says the prices are unlikely to go down anytime soon. “We are concerned about this trend,” he adds.The report also found that the average price for co-ops and condos on the Upper West Side rose 96 percent to $2,098,000, followed by Murray Hill at 92 percent with average price tags of $1,072,000, and Midtown West at 50 percent gains to $1,988,000 compared to a year ago. The tremendous increases were driven by brisk sales in new luxury developments in these locations.While the number of sales was down overall in the quarter, prices continue to rise particularly in Manhattan and in Brooklyn as well.“As the market in some areas of the city has softened due to the slowing economy, we must consider where prices were five years ago before the recent market boom. The condo market in particular has experienced tremendous growth. In the first quarter of 2003, for example, the average sale price for a condominium in Manhattan was $711,000, whereas today Manhattan condominium prices average $1,829,000,” Spinola concludes.Other highlights for condos and co-ops:• The average sales price for a unit (condo and co-op) in New York City rose 34 percent to $994,000 in the first quarter of 2008 compared to the first quarter of 2007.• Manhattan had the highest average sales price of a unit in the first quarter at$1,552,000. This was a 40 percent increase compared to the same time last year.• The average sales price of a unit in Brooklyn rose 10 percent to $483,000. Average sales prices for units in Queens also increased 13 percent to $290,000.