According to the real estate report, Manhattan real estate had its best year ever, rebounding from the pandemic, with transaction volume reaching a record $30 billion.
According to a report by Corcoran, more than 16,000 contracts were signed with a total value of US$30 billion-both of which broke records. Given the decline in population, rising crime rates and high taxes, many people thought that the market would never return to pre-pandemic levels, but many indicators are at or close to the intensity of 2019-bidding wars and inventory declines.
By 2022, this momentum shows no signs of slowing down. According to a report by Miller Samuel and Douglas Elliman, sales in the fourth quarter exceeded $6.7 billion, the best fourth quarter in at least 32 years.
The average price of a Manhattan apartment is now $1.95 million. Compared with a year ago, the median price in the fourth quarter-many people consider a more accurate measure-rose by 11%, close to pre-pandemic levels.
“Obviously, the recovery in 2021 is faster than I think most people expect,” said Jonathan Miller, CEO of Samuel Miller. “This is amazing.”
The agent said that Manhattan’s “pandemic discount” has now basically disappeared. Prices have fallen between 6% and 7% at the bottom of the market, but in many market segments, especially apartments, prices have rebounded. According to Brown Harris Stevens, the selling price of the apartment is now 97.6% of the last asking price, the highest level since 2017.
On December 7, 2021, the sun as seen from Hoboken, New Jersey, sets at the earliest time of the year, when the sun sets from Lower Manhattan and One World Trade Center in New York City.
Gary Heshhorn | Corbis News | Getty Images
According to Miller Samuel, the bidding war is at its highest level since 2018.
The rebound is mainly driven by the top of the market—especially wealthy buyers snapping up penthouses and large full-floor units in new developments. Inventories of new developments fell by a third in the fourth quarter, the fastest decline ever. According to Serhant’s data, newly developed condominiums priced at US$10 million or more have the fastest sales speed—on average, they only have 97 days to market.
According to Miller Samuel, last year there were at least eight sales exceeding US$50 million. The biggest deal this year was Alibaba Executive Vice Chairman Cai Chongxin’s purchase of the two-story building at 220 Central Park South for US$157 million. Two other transactions within the price range are also at 220 Central Park South, which is already home to the most expensive home ever sold in the United States-hedge fund billionaire Ken Griffin’s $238 million penthouse.
Jeff Bezos continues to collect apartments at 212 Fifth Avenue in the city center. The five apartments he bought now total $119 million.
The broker said that many buyers are not New York residents or income tax payers. Instead, they are wealthy real estate investors, and they are looking for a field or investment property. During the pandemic, the rise in stocks, asset values, and cryptocurrencies created trillions of dollars in wealth. Many wealthy people want to convert their market gains into hard assets such as real estate.
According to brokers, more than half of the transactions in Manhattan last year were cash transactions.
Miller said that the Manhattan market may maintain a strong momentum in the first half of this year based on reduced inventories and continued strong financial markets.
“Because New York is late for the recovery of real estate demand, there may be increased activity or higher than normal levels in the next few quarters,” he said.
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