Lower Manhattan is tale of two markets: Rental demand is up as sales slow

Lower Manhattan’s rental market remained strong in the third quarter, with prices in the Financial District and Battery Park City both climbing.

That stood in contrast to the stagnating sales market, according to a Platinum Properties third quarter market report that detailed both neighborhoods.

That trend has dominated this year. In July, Platinum managing partner Teresa Stephenson said strong rental markets and sluggish sales markets in both neighborhoods indicate potential buyers “are just waiting” for sales prices to drop even further.

In Battery Park City, sales price and activity plummeted. The average sales price in the neighborhood, which stood at $1.15 million, fell by almost 26 percent from $1.55 million in the previous quarter. Trades were also down, by close to 30 percent.

From July through September, sales prices in the Financial District also plunged more than 25 percent — $1 million, down from $1.4 million — and overall sales activity dipped 16 percent compared to the second quarter. Year over year, however, the number of sales was up — by nearly 24 percent — indicating a buyer’s market.

The downward trend mirrors the rest of Manhattan’s third quarter results.

Meanwhile, FiDi’s rental market ticked up almost 4 percent to $4,498. There was also an 80 percent increase in leases signed quarter over quarter.

The Battery Park City rental market logged a 14 percent year over year increase in average rents and a 72 percent hike in leased units. Average rent is $5,698, up 11 percent from the average in the second quarter.

Write to Erin Hudson at ekh@therealdeal.com