Manhattan, New York has a well-deserved reputation as one of the best real estate markets in the nation, as well as a top contender in the global real estate investment market. Even in economically uncertain seasons, such as what we’ve witnessed in 2022, Manhattan continues to see growth and is poised for more great opportunities in 2023 and beyond.
Where is there space for all of this new construction?
Until 2017, an antiquated zoning requirement
stated that if any Manhattan building was demolished and replaced, the new building had to be smaller than the original. This law provided very little incentive to create new Manhattan condo units, and the limitations were causing Manhattan to lose its edge as a premier investment market. Fortunately, in 2017, the limiting stipulations were removed. Now, developers seeking to build in Manhattan are assessed an air space fee and are required to contribute to public improvements, but truly, once again, not even the sky’s the limit in Manhattan.
Not surprisingly, savvy developers moved quickly to create premium dwellings for luxurious living throughout the borough, concentrating primarily on building Midtown and Downtown Manhattan condos for sale. As a result, the skyline of Manhattan is once again reshaping and evolving, proving the indomitable spirit that defines New York.
What’s happening in the current Manhattan real estate market?
Manhattan condos for sale offer incomparable luxury living with sleek design, unique amenities, and easy accessibility to the best New York has to offer. For such premium real estate
, buyers can expect to pay $1.95 million on average, a price that reflects a modest 2% increase over the same time last year. New developments set a higher bar, with average prices near $3.86 million, attracting residents and investors with modern convenience, prime locations, breathtaking views of the city skyline, and amazing amenities. Current listings spend 84 days on the market on average.
The Manhattan residential market forecasters project extremes—either the opportunity of a lifetime or gloom and despair—depending on which view one takes of the data. Seasoned real estate brokers, such as Arlene Reed and Rebecca Blacker
, can offer a more realistic perspective of what’s happening in Manhattan based on their combined experience of over forty years in the business.
At first glance, the numbers aren’t encouraging
. In a quarter-by-quarter comparison of 2022, sales are down, dropping 18% in the third quarter of this year. Signed contracts have decreased by 29% since September 2021. A knee-jerk reaction may be to quickly write off investing in Manhattan condos at this time.
In stepping back to consider a longer view of what has been happening in the Manhattan market, 2021 and early 2022 saw insatiable demand met with low supply, as well as interest rates that were still considered moderate. This was an unsustainable frenzy that skewed the market with record-setting deals. To compare where the market is now to this out-of-character season is an unfair assessment.
The market has shifted—this is certain—in light of rising interest rates that are now at 6.875% for a 30-year mortgage. Additionally, inflation has reached the highest levels seen in the last forty years, and it has shown no sign of slowing yet. Residential property sales are responding to these factors, and the market has returned to a balance that’s now favorable to buyers.
If you’re looking for a condo for sale in Manhattan, there may be no time like the present for you to find a great property at a competitive price. Sellers are in the position of having to earn your business with better pricing and incentives. Buyers can now expect to pay 7% under asking price on average. Recently, 25% of sellers have chosen to reduce their prices to generate sales more quickly. Inventory is increasing as new construction continues and fewer people are looking to purchase than in recent months, which means more options for buyers to choose from. No longer are buyers being forced to seize any property that becomes available at prices well above asking just to earn a place at the negotiation table. Buyers are in the driver’s seat, and that makes it a good time to buy.
Where can I find new construction?
If developments stay on schedule, Manhattan is expected to boast over 1,100 new condos distributed across twelve different buildings by the close of 2022. One noteworthy development
is Brooklyn Tower, with 547 units on DeKalb Avenue. Sales have already begun for this luxury skyscraper. The historic rental building at 393 West End Avenue is a unique opportunity in that it was a rental property for the better part of a century. Now, it’s being completely transformed into condos. The Cortland, another new construction that gives a nod to historic architecture, offers exquisite and appealing amenities, including multiple pools, a playspace for children, a screening room, and more. Oh…and waterfront views.
The landscape of Manhattan will continue to change over the next several years, eventually resulting in 3,500 new residential units and 860,000 square feet of retail space. For those seeking condos for sale in Manhattan, new opportunities are emerging every month. Continued growth in business and residential properties will only cause property demand and values to continue increasing.
How do I learn more?
There’s no team like the licensed real estate brokers Blacker & Reed
to answer all of your questions about new condos in Manhattan and to help guide you through the process to find your perfect property, whether you’re seeking an investment opportunity or your forever home. They can be the voice of reason and wisdom in an ever-shifting real estate market. Reach out to them today!*Header photo courtesy of Shutterstock