Manhattan housing prices continued their rise at a decent pace in the 3rd Quarter, as demand outpaced inventory supply. While inventory is up in the quarter, such increase can be attributed to more pre-construction inventory entering the market that won’t be delivered for 1 to 3 years.
These pre-construction New York condos for sale, mostly in prime neighborhoods, are trading at a minimum of $2,500 per square foot, with much of the product closer to the $3,000 per square foot level for the better units. The rise in the cost of land in Manhattan has played a significant part in new development pricing, with headlines noting very prime residential land trading for $800 to $1,000 per buildable square foot. This does not take into consideration the cost of construction.
Four areas of Manhattan to watch for development are:
57th Street corridor
Now dubbed Billionaire’s Row, 57th Street is seeing an influx of ultra-luxury development, such as One57, 432 Park Avenue, 220 Central Park South, Tower Verre and the Nordstrom Tower (217 West 57th St.), that is poised to change the landscape of the area. Retail rent increases along the 57th St are already outpacing the rest of the Island.
High Line/Hudson Yards
Phase I of the Hudson Yards is scheduled for completion by the end of 2018, by which time much of the luxury High-Line neighborhood should be completely developed. In September, Neiman Marcus announced that it will anchor the Shops at Hudson Yards, cementing the area as a future luxury destination.
Second Avenue and environs
The Second Avenue subway is scheduled to open in two years. NYC has not seen a new subway line open in at least 50 years, so we are excited to see all the development that such transportation access will bring to the eastern part of the Upper East Side.
The World Trade Center
As the World Trade Center buildings #1, #4, and #7 have opened for business, there has been a resurgence in the area, including upscale retail and notable New York Condos for sale: The Four Seasons Hotel and Residences Downtown, 50 West Street, The Beekman Residences, Woolworth Tower and 101 Murray., so prices haven’t yet skyrocketed.