Marilyn Harra Kaye |
 
 

How Does the Real Estate Market Differ in Manhattan?

The market is divided into several categories.

  • Condominiums are the love of the international marketplace; there are no approval boards, but the buildings have the right of first refusal for purchase. Further, most condominiums can be rented and become more of an investment if the owner decides not to live in the residence. The international buyer considers our market a bargain, as in some cases their currency is worth up to double the value of the U.S. Dollar. A Million Dollar apartment will cost some international buyers the equivalent of $500,000 to $600,000-a 40 to 50% discount. Manhattan is still seen as a safe haven for their money, and a residence in Manhattan , the most exciting city in the world, a great prize. In the four years since 2001 doomsayers have been predicting price decreases; the market went up. The inventory of condominiums on the market continues to be limited.

 

  • Pre-war Coops are small in number of availabilities and greatly requested by families. For both multiple and extended families that desire common residence, a large pre-war cooperative is a rare emerald.

     

  • Post-war Coops. Young couples seeking starter apartments, singles and empty nesters who request smaller pre-war coops usually buy post-war coops due to the higher prices and limited availability. Many seniors want two apartments-one downtown and one uptown. They are living longer than ever, in better health, and want to enjoy the excitement of the city. Post-war coops are generally smaller than pre-wars both in unit size and room dimensions. Due to the lack of inventory in all types of apartments they are selling quickly if priced at the market. They are generally priced 40 to 100% less than a condominium of roughly the same dimensions.

     

  • New construction both in condos and coops sell quickly and usually have many modern amenities. (Condominiums comprise most new construction.) The developers compete for buyers with concierges, gyms, pools, high-speed internet and restaurants. The majority of these are smaller with few exceptions. Unlike the prewar cooperative, newer construction usually must be combined to attain a 4 or 5 bedroom family apartment, usually done during construction. Savvy buyers looking for larger family apartments usually approach the developers with their requests. This practice tends to lock up many available smaller apartments in new construction, therein another reduction of available apartment inventory.

     

  • Conversions are another form of inventory, although now there are very few buildings eligible for conversion. The insider price is usually 30 to 50% less than the price to outside tenants. Even if a tenant wants to move, they generally purchase their apartment for resale and plan on making a big profit. Conversions are rare and the few apartments that are on the market rarely wind up in new hands.

     

  • Townhouses are the last vestige of privacy and private ownership in Manhattan . It's all yours! Your children can run, play the piano and scream. There is no board and the neighbors won't complain. Everyone wants them and there are very few available. People love to control their own destiny. There are two types of townhouses: a private residence occupied by one family and an office/home clamored for by doctors and other professionals. Prices per square foot are slightly less than for large condominiums but the dearth of inventory and higher demand has kept the prices high. Most owners get managing agents for their townhouses to attain the same services a cooperative or condominium affords.

     

  • Multi-family houses are grabbed up quickly depending on condition and rent prospectives. Many owners want the income and an apartment for themselves.

     

 

 

 

 
 
   
 
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New York, New York 10128
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New York, New York 10022
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New York, New York 10011
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