New York City's Hot Real Estate Market Seen to Continue in the Next 12 Months
New York City, one of the best places cities to live in the world and comparable to London when it comes real estate pricing and luxury. The Big Apple may fare even better.
According to Forbes, as of 2015, the city's real estate market has been sizzling hot when it comes to sales price. By the last quarter, Manhattan's apartment average sales price was pegged at $1.95 million, showing a 12 percent high jump year-over-year, based on the Elliman Report released recently.
On that same period, the sale price, on average, hit $1.15 million, whereas the per square foot price reached to a wallet-shattering amount of $1,645. Meanwhile, going to rental market sector, Manhattan's rental prices also climbed by three point nine percent over the last year, with the average rental price of $4,071 as of Nov. 2015.
The slowdown of China market is what's pushing the demand from overseas and global buyers, specifically in the condo market. The rising new condo construction have an average sale price of about $3.3 million. By fourth quarter, properties which have been newly developed took an overall sales of 18.6%. Figures that may be considered high in the market.
Meanwhile, on the co-op side, Forbes continues, "Pricing is still moving up but it's been slower to peak, with the average sale price hovering around $1.28 million. The number of active listings declined by 6.2% from the fourth quarter of 2014, while sales are down 4% over the same time frame." Despite the decline, however, 2015 was still a good year for real estate.
Now, the important question everybody seems to be asking is, what can we expect from New York's real estate market?
It seems that New York's real estate would remain hot this year and the city would keep the solid ground, regardless of the foreign market shake ups. China, for instance, has helped "triggered a fight-or-flight response among foreign investors and the result is a substantial shift in assets to less volatile U.S. holdings, including real estate."
Collier's 2016 Global Investor Outlook says New York will still be the top destination for wealthy investors needing a safe haven. When it comes to global capital, Manhattan led the rest, getting $4 billion and it is expected that the trend will continue, with at about 24% of overseas investors eyeing New York over the year.