The standard rate of apartments in Manhattan hit a record of $1.95 million in the last quarter of 2015, as elite real estate pursued to fight slowing growth overseas and vulnerable stock markets.
Real estates increased nine percent in the last quarter, comparing it with the same time in 2014, based on the analysis of Douglas Elliman. However, rates are elevating even higher. The standard sales rate went up to 12 percent, while the mid sales rate went up to $1.15 million, and the cost per square foot was a record breaking $1,645.
The cost toughness implies that Manhattan real estate stays on financial high ground for the global wealth, as they look for safety from vulnerable financial markets and the drop in China.
Jonathan Miller, the president of Miller Samuel, an appraisal company said, "The (Manhattan) market continues to be a safe haven. The volatility and government intervention in China will just incentivize more outflows."
The tough overall profits resulted to big-ticket closings in new improvements, leading costs to new highs. By the end of 2015, it was pricier than ever to purchase a Manhattan apartment, by many standards.
"It was an extraordinary year," reflects Pamela Liebman, Corcoran Group chief executive, which listed a jump in the median sales costs for new $2.24 million development, yet another record. "But 2015 still held a lot of frustration for buyers wanting apartments at a reasonable price," she said.
"As we go into 2016," the chief executive added, "there's going to be very definite winners and losers." Developers, she explained, "need to be building a great product that is differentiated from other properties on the market and is coming on at the right price."
New developments are anticipated to pursue to affect costs as major deals signed in 2016 have yet to be reflected in city records and to officially close.
