Wednesday, March 6, 2013

Average property price by neighborhood in New York

Based on popular demand from clients, here is an updated list of the average property price by neighborhood in Manhattan, New York.  The numbers are based on a snapshot of the average asking price of a 2-bedroom condominium.

There are many ways to slice and dice these types of data.  Being a former finance guy, I understand well how numbers can be cut differently to present a story.  For example, we could look at average price per square foot and the order would change.  Or the average price of a coop, average price of a 1 bedroom (vs 2 bedroom) condo etc.

Average Price of 2-Bedroom Condominium

  1. Soho   $3.95m
  2. West Village   $3.52m
  3. Tribeca   $2.77m
  4. Chelsea   $2.47m
  5. Gramercy   $2.30m
  6. Nolita   $2.07m
  7. Greenwich Village   $1.95m
  8. Upper East Side   $1.84m
  9. Financial District   $1.67m
  10. East Village   $1.61m
  11. Midtown West   $1.59m
  12. Midtown East   $1.50m
  13. Upper West Side   $1.45m
  14. Murray Hill   $1.31m

The most expensive buildings - One 57, Time Warner, 15 Central Park West - are not in neighborhoods that are at the top of this list.  

Generally, with higher property prices, rents are higher as well hence from an investment perspective, the yield often stays quite the same.

Ultimately, there is no best neighborhood because the right investment is based on multiple factors, including
(i) price point
(ii) location
(iii) building
(iv) apartment within the building.

The last point is important because even within a building, there are better located apartments.  For example, a south facing unit may be best for a certain building because the east and west facing units would face a neighboring building unless they clear the 25th floor.

These are factors that can only be judged from actually seeing an apartment.

Wei Min Tan is Managing Director of Castle Avenue Partners and focuses on luxury condominiums in Manhattan, New York.

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