Thursday, January 7, 2016

Manhattan condominiums outperformed in 2015

By Wei Min Tan
​Jan 7, 2016

Global investors who have already invested in a Manhattan, New York condominium have reason to be cheerful.  In 2015, Manhattan condo apartments far outperformed major global indices.

In Q4 2015, average price per square foot of a Manhattan condominium increased 26.2 percent, to $1,959 per sqft, compared to a year ago. 

With leverage using 50 percent equity and 50 percent debt, the returns could be magnified to 48.7 percent.  At 50 percent equity, rental income should cover all expenses (mortgage, common charges, taxes, insurance).

Q4, 2015 condo metrics:
Average price per sqft: $1,959 (+26.2% vs year ago)
Median price: $1.735m (+21.3%)
Sales volume: 1,434 (+28.6%)
Days on market: 96 (-7.7%)

Among the indices compared in the chart, only the Nasdaq was up in 2015.  All others were either flat or down with Gold declining the most, by 10.7 percent.

Data:  Miller Samuel Appraisers

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Wei Min Tan is a property broker focusing on Manhattan, New York luxury condominiums and foreign buyers.   He is often interviewed by the media including CNN, The New York Times and The Wall Street Journal on the subject of foreign buyers of Manhattan property.  Wei Min can be reached at +1.212.380.6134,

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