Wednesday, September 19, 2012

Manhattan condo prices up as supply shrinks

Manhattan condo prices continue to increase as supply is at the lowest level in years, according to Crains New York.  432 Park Avenue, which will be the city's tallest residential tower, is now increasing average asking price to $5,800 per square foot.  This is three years before scheduled completion.

For 2012 year to date, 27 development plans representing a mere 875 units were submitted to the Attorney General's Office.  In 2011, there were 52 plans or 2,472 units that were submitted to the AG's office.  During the peak of 2006, there were 211 developments with 15,827 units submitted.

Low interest rates, demand from foreign buyers, supply shortage and improvement of the U.S. overall housing market are all creating the perfect storm for condo upside.

Wei Min Tan is Managing Director of Castle Avenue Partners and focuses on condominium property in Manhattan.  He was most recently interviewed by South China Morning Post in the article Manhattan Property Attracts Investors From Hong Kong and China.

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