Archive for May 2nd, 2008
You are currently browsing the Business Eden Blog blog archives for the day Friday, May 2nd, 2008.
2
May
2008
Manhattan’s immunity to real estate crisis?
Is the real estate market in Manhattan still flourishing?
The real estate recession has been continuously spreading since the credit crunch started 8 months ago, reducing considerably prices in small towns, suburbs, and cities such as Seattle and San Francisco that have so far been resilient to the crisis. It would seem that New York is the last big city where real estate is flourishing.
Between January and March 2008, the average price for a Manhattan home increased by 18%, up to $872,000, compared with the same period last year. The average price for all of New York City, which encompasses also weaker middle-class neighborhoods in the Bronx, Brooklyn, Queens, and Staten Island, increased by 4% in the first quarter, to $535,000, according to the report by the real estate industry group.
What is driving the prices up in NYC?
New York’s real estate boom was developed by means of a slew of newly completed and startlingly expensive condos.
For example, Sting paid $26.5 million for a condo in the newly-built 43-story building at 15 Central Park West. Sanford Weill, the former chairman of Citigroup, bought an apartment in the same building for more than $42 million for an apartment in the same building.
How much does an expensive condo in Manhattan cost?
According to a survey by Businessweek.com the highest asking prices in Manhattan now vary between $36.5 million and $75 million.
What are the prices of the lower end apartments?
The market is also busy on its lower end, which in case of Manhattan generally starts at approximately $400,000 for a studio. (People in New York are used to living with less space.)
Are there any other cities where real estate market is booming?
Manhattan isn’t America’s only developing market. Bright spots in the real estate market are also present in Austin, Tex., and Charlotte, N.C. Additionally, increasing oil prices have kept Houston’s market afloat. Nevertheless, the nation’s major cities have generally shown market decline.