Manhattan is the place to be if you have money to burn - as an average price apartment in the city has just reached $1.95 million in the fourth quarter.
CNBC reports that sales in real estate grew nine percent in the last quarter compared to the same time period the year before, based on the analysis done by real estate firm Douglas Elliman. However, it seems that the prices are climbing higher as the average sales price jumped 12 percent, while the median sales price hit a record $1.15 million and the price per square foot hit a record $1,645.
The strong price only indicates that Manhattan remains the financial safety haven for the world's wealth as they look for safety in the volatile market, not to mention the slowdown being felt in China.
Jonathan Miller, president of Miller Samuel, an appraisal firm says, "The (Manhattan) market continues to be a safe haven. The volatility and government intervention in China will just incentivize more outflows."
CNBC continues that Manhattan seems to be divided into to markets. The report adds that, "The condo market, driven in part by new construction favored by overseas buyers, is on a tear, with average sales prices jumping 25 percent over the past year to $2.66 million, and the price per square foot up 26 percent to $1,959. For just new construction, average sales prices hit $3.29 million or $2,210 a square foot."
Meanwhile, the co-op market, mostly in older buildings and mainly with U.S. buyers with an average selling price of $1.28 million or $936 per square foot.
Condos comprise of 19 percent of the market and it seems that it is expected to double in the next year and a half, with more than 5,500 units built in 2015 alone and more are expected this year and perhaps all the supply may not be absorbed.
At the moment, however, Manhattan real estate has a lot of buyers and not enough to buy. The inventory remains flat and almost 50 percent of the listings were sold higher than the original price. What is even more suprising is that properties are disposed within 82 days instead of the 105 days trend a year ago.
