In the third quarter of 2015, Manhattan earned more than $4 billion worth of global capital. Now, the big question is, will New York real estate continue to be as successful in 2016?
New York real estate is to remain a hot ticket for 2016, according to Collier's 2016 Global Investor Outlook. The report highlighted that 24 percent of foreign investors have already expressed their plans to invest in New York real estate over the next 12 months.
With China's economic slowdown, many investors were triggered to shift their assets to less volatile investments. Apparently, New York's real estate is one of the investment opportunities that they deem as secure and stable.
Several reports about last year's performance prove that the city's real estate sector is indeed a fertile ground for investment. At the end of 2015, New York's real estate market reached record sale prices. In the fourth quarter, the average sale price for a Manhattan apartment hit a historical high of $1.95 million. According to the latest Elliman Report, the lofty price tag showed a 12 percent year-over-year jump.
During the same period, the average sale price amounted to $1.15 million while the price per square foot climbed to a whopping $1,645.
Meanwhile, in the city's rental market, Manhattan rental prices increased by 3.9 percent, with the average rental price at $4,071 in November 2015.
Moreover, the condo market also saw significant growth in 2015. New construction sale prices averaged at $3.3 million and many newly developed properties were sold off last year. In the fourth quarter, new condo units represented 18.6 percent of the overall sales market.
On the co-op side, things moved a little slowly, although some growth was still evident. Last year, the average sale price of co-ops hovered around $1.28 million. The number of active listings also declined by 6.2 percent and sales went down by 4 percent.
