Average apartment prices in Manhattan hit a record of $2.2 million in 2016, thanks in part to closings at ultra-luxury condominiums such as 432 Park Avenue and 150 Charles Street. That’s according to a new report from CityRealty, which also predicted that condo prices next year would dip slightly for the first time in five years.
The average sales price of a Manhattan condo in 2016 was $3.1 million, according to the report, up 19 percent year-over-year from $2.6 million. The average price per square foot was $1,886, compared to $1,735 in 2015.
The median price for all apartments also reached a new high of $1.2 million, up from $1.1 million in 2015.
By Dec. 31, around $25.8 billion worth of Manhattan residential real estate will have changed hands, CityRealty predicts. That’s up from $24.6 billion last year.
Gabby Warshawer, director of research at CityRealty, said while “prices are bonkers,” the data for the year is skewed by closings of super-pricey purchases made in prior years.
“It really is a distortion,” said Jonathan Miller, CEO of appraisal firm Miller Samuel. “A record is a record, it’s just what it symbolizes. What I think it symbolizes is market conditions and mix of sales over a few years.”
Here’s a look at some of the highlights from the report, which has projections based on closed sales as of Nov. 30.
Average price of condos and co-ops (Credit: CityRealty)
Condos are set to get a little cheaper
The average condo sales price hit a record $3.1 million in 2016, but CityRealty projects it will dip 6.5 percent next year to $2.9 million. Price per square foot is also projected to fall slightly, to $1,835 from $1,884.
Average co-op prices dipped slightly in 2016
Co-op prices dipped about 7 percent to $1.3 million, from $1.4 million. The median price went up, however, to $825,000 in 2016 from $785,000 in 2015.
Average sales prices for new development (Credit: CityRealty)
New kids on the block
New development sales will reach roughly $8.9 billion by the end of 2016, a 58.9 percent increase from $5.4 billion in 2015. Roughly 1,800 new condo sales are expected through the end of 2016, compared to 1,464 last year.
But the outlook for the next couple of years is far less rosy, according to a September analysis by The Real Deal. The target offering price of new condominiums approved for sale in New York City is down 34.4 percent year-over-year, despite only a slight drop in the number of offered apartments, that analysis showed.
432 Park Avenue
The year of 432 Park
Harry Macklowe and CIM Group’s skinny supertall had a bumper year. Through Nov. 30, the top sale of the year was an $87.6 million closing at 432 Park Avenue, which is the third-priciest condo sale ever recorded in New York City, according to the report.
Saudi retail magnate Fawaz Al Hokair closed on the apartment on Sept. 9 for a whopping $10,623 per square foot, as TRD first reported. The transaction included an unusual $56 million from the sponsor, CIM.
Al Hokair wasn’t the only one dropping some serious coin on apartments at 432 Park. Roughly half of the report’s 25 priciest sales occurred at the property.
The Witkoff Group’s 150 Charles Street and Rudin Management’s Greenwich Lane complex also made appearances on the list.
15 CPW was the city’s most expensive building
Sale prices at Zeckendorf Development’s 15 Central Park West were higher than at any other building in 2016, with units selling for an average of $6,277 per square foot, the report found. Walker Tower, developed by JDS Development Group and Property Markets Group, was the second most expensive building, with an average price per square foot of $5,803.
What a difference a decade makes
This year’s average price of $2.2 million is a whopping 91 percent increase from 2006. The median price — of $1.2 million — is 62 percent higher than it was 10 years ago.
But if you think that’s impressive, consider that in the first quarter of 1989, the average price of a Manhattan apartment was $371,099, or $314 per square foot, according to Miller.