Global Investors and Buyers Love Manhattan
May 10th, 2008
With the rest of the country in a real estate slump, that’s hardly the case for Manhattan.
A great deal of money is being spent on very expensive apartments in Manhattan. The average price of a Manhattan apartment rose over the past year to a record $1,690,995, fueled by an increasing share in luxury sales. Sales of apartments priced over $10 million jumped 318% from the first quarter of 2007. Closings at 15 Central Park West and The Plaza played the most significant role, and removing them from the average price would bring it down to $1,417,496. The median price, which is not as affected by increased high-end sales, was up just 13% over the past year.
The rapid weakening of the U.S. dollar against the British pound sterling and the euro noticeably lowers the cost of New York real estate for Europeans. And with the U.S. dollar weakening 2 percent against the Japanese yen, international buyers have become a core of Manhattan homebuyers – especially for two and three bedroom apartments or larger.
Foreigners are abundant on the streets of New York, buying everything from apartments to clothing. A huge arrival of Manhattan buyers from Europe, Japan, Korea and Russia have joined the ranks of Manhattan homeowners.
Manhattan boasts some of the most prominent addresses such as The Plaza and Central Park West which are averaging $3,500-4,000 a square foot. In London these same properties would sell at over $6000 a square foot.
The growing influx of foreigners buying homes in New York City for work and play and as investments is rapidly growing. According to the National Association of Realtors, “One in 5 Realtors in the U.S. has sold a home to a foreign investor in the last year.”
Global investors are looking for places to invest their cash. And Manhattan is just the place for these investments … with another record in apartment sales in 2008 thus far.
Now is definitely the time to buy real estate in Manhattan.