Luxury Market Sales Expand More Than Overall NYC Market in Q4 2014
NEW YORK—The strength of the condominium market and higher closing prices in the luxury segment drove up the average sales prices in Manhattan in the final quarter of 2014, according to sales data released by Town Residential and Douglas Elliman.
The average price of a Manhattan condo increased 7.19 percent compared with third quarter 2014, from $2,292,837 to $2,457,797, according to The Aggregate report from Town Residential. This increase was 25.46 percent higher than the average sale price in Q4 2013.
Market-wide average sales prices increased 18.55 percent year-over-year, from $1,472,808 to $1,745,942. Condominiums accounted for fewer transactions than cooperatives, making up just 44 percent of the closed sales.
Average sales prices in Manhattan’s luxury market—defined as the top 10 percent of residential sales, excluding townhouses—increased 31.26 percent year-over-year, from $5,798,051 to $7,610,347.
Andrew Heiberger, CEO and Co-Chairman of TOWN Residential, said sales in the luxury market had been especially notable. The average price per square foot is exceeding $2,500, nearly 10 percent more than this time last year.
“As a testament to continued enthusiasm and demand in our market, we have seen a 25 percent uptick in building permits across the five boroughs. This number is significant as it further reinforces New York City as a sought-after global destination for real estate development, investment and enjoyment,” Heiberger said.
The entry point for the luxury market was approximately $3,270,000 in quarter four 2014. Apartments from this segment that sold in Q4 spent a median of 95 days on the market. In Q4 2013, luxury apartments spent 126 median days on the market.
The cooperative market, with a recorded average sales price of $1,178,123, experienced a quarter-over-quarter decrease in average sales price of nearly 9 percent. Cooperatives sales had only a modest year-over-year growth of 4.13 percent. As seen in all segments, there was a decrease in median days on the market to 80, compared with 92 at fourth quarter 2013.
Douglas Elliman’s fourth quarter 2014 report showed that half of all sales were sold at or above list price. Median sales prices increased in Manhattan by 14.6 percent to $980,000, with the price per square foot up 9 percent to $1,284 compared with the same period during the previous year.