Manhattan Sale Prices Drop: CityRealty Report

The study found that the average cost in the New York City borough continues to drop, but downtown is still thriving when it comes to condo, co-op and new development purchases.
Gabby Warshawer, director of research, CityRealty

Gabby Warshawer, director of research, CityRealty

The average sale price of a New York City apartment fell in the four weeks leading up to August 1, in addition to the number of sales. According to CityRealty’s Monthly Market Report, which analyzes sales and trends in Manhattan, apartment sales dropped 21 percent, from 1,207 to 948 units sold. The average apartment price also dropped, this time by 9 percent from $2.3 million to $2.1 million.

Last month, there was a total of 409 condo sales, with an average price of $2.9 million and $1,842 per square foot. There were 539 co-op sales at an average sale price of $1.6 million. 

The top three sales for the month were as follows:

  • The Pierre, 795 Fifth Ave., $44 million
  • Whitney Condos, 33 East 74th St., $25.5 million
  • 740 Park Ave., $25.3 million

“CityRealty’s September Manhattan Market Market report showed a mixed picture for the condo and co-op markets. Average prices for condos were down from $2.3 million the prior month to $2.1 million this month. This decrease can be explained, in part, by the large number of closings—over $100 million in sales—recorded the prior month at one of the city’s priciest new developments, 56 Leonard St.,” Gabby Warshawer, director of research at CityRealty, told Multi-Housing News. “There were no new developments this month that had such a high volume of closings, underscoring the extent to which a large new development can affect the overall Manhattan numbers. The picture is mixed, though, because the average price for co-ops increased from $1.5 million last month to $1.6 million this month. Since co-ops are generally less expensive than condos, this indicates buyer enthusiasm for apartments at more moderate price points.”

Condo Sales

By region, downtown Manhattan—which comprises Chelsea, the East Village, Flatiron/Union Square, Gramercy Park, Greenwich Village and SoHo—featured the highest amount of sales for the past month at 44 percent, totaling $513 million. Chelsea and SoHo came out on top with the most sales, counting 37 and 22, respectively. Downtown also featured the highest price per square foot, with an average of $2,136. Midtown was the second highest-grossing area, with 21 percent coming out at $244 million. The section had the second-highest price per square foot, with an average of $1,733.

The least popular areas for condo sales were the Financial District and the Upper East Side, accounting for 8 percent ($94 million) and 13 percent ($157 million), respectively. Out of the total 18 neighborhoods featured, Midtown’s Turtle Bay/United Nations, the Upper East Side’s Carnegie Hall and the Upper West Side’s Lincoln Center areas all had the lowest amount of sales over the past 30 days. 

New Development

The average sale price of new developments was $3.9 million in the month of August. The average price per square foot came out to $2,074, which was an 8 percent drop from July. Year-over-year, this calculated to an 18 percent drop. There was a decrease in development sales, from 156 recorded in the previous month to 106 for August. Of the total, 26 percent of recorded sales were for condo units. The difference between new and non-new development prices was $314, a plummet from last years $785 difference. The aggregate sales total of new developments was $410 million, with 35 percent of that number accounting for condo sales. 

Downtown dominated once again in popularity, with 37 sales totaling $198 million. Following that was Midtown with 36 sales totaling $98 million, the Upper East Side with 37 sales at $65 million and the Financial District totaling $46 million across 12 sales. The Upper West Side was last pick, with only one sale for the month of August, coming in at $4 million. 

Luxury 

Calculated from August 1 to August 31, luxury Manhattan condo signings above $2,000 per square foot hit an aggregate value of $469 million. With a total of 99 contracts signed, the average price came to $4.7 million. The top three most expensive contracts by asking price were The Woolworth Tower Residences in Tribeca, which sold for $21 million and $3,499 per square foot; One West End in the Upper West Side that also sold for $21 million, but was $3,506 per square foot; and 505 West 19th St. in Chelsea, which sold for $17.5 million and the lowest price per square foot at $2,979. 

Image and graph courtesy of CityRealty