New York luxury property, as defined as the top 10% of sales, outperformed the overall New York property market in 4Q'10.
The median price of the New York luxury property segment, according to Miller Samuel, was $4.35m, up 15 percent compared to last year. Average price per square foot was $2101, up 13 percent compared to last year. In context, the overall Manhattan New York property median price increased 4.3% while average price per square foot increased 0.7% vs last year.
This shows that the luxury property segment outperformed the market in general. Which is expected. Days on market decreased 41% to 136 days.
My observation of the New York luxury property segment is that the gains are even more dependent on price appreciation vs rental income yield. Rental yield of luxury property, again defined as the top 10% of sales, is lower than the New York average.
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