Trends, emerging neighborhoods and predictions: snapshot of Manhattan's real estate sales market.There has been a complete change in the Manhattan real estate market in the last two years.
In modern property law, individual ownership of one dwelling unit within a multidwelling building. Unit owners have undivided ownership interest in the land and those portions of the building shared in common. prices have skyrocketed up more than 20%. Due to low interest rates and investment appeal fueled by disgruntled dis·grun·tle
tr.v. dis·grun·tled, dis·grun·tling, dis·grun·tles
To make discontented.
[dis- + gruntle, to grumble (from Middle English gruntelen; see stock market investors, condominiums have become a popular choice for those seeking to maximize their assets, thus creating a real demand.
What is perhaps most remarkable about today's market is that premium priced condos now transcend neighborhoods. This comes back to the notion that Manhattan has, in a sense, become one large neighborhood.
Former Mayor Guiliani was effective in cleaning up most of the City, and crime has reached a 30-year low, melding together neighborhoods that were previously isolated. Buyers rush to these new transitional neighborhoods because they feel they are getting in on the upswing Upswing
An upward turn in a security's price after a period of falling prices. of a market bound for rapid growth. The outcome is that areas that once could never sell homes for more than $500 per square foot are now commanding over $700.
As a result, the most viable real estate investment for developers has been the construction of luxury condominiums. For instance: a condo known as 57 Bond Street was built on the corner of Bowery Bowery
Manhattan district, once notorious for brothels and gambling halls. [Am. Hist.: Hart, 97]
See : Debauchery and Bond Street, and the developer fetched prices north of $700 per square foot, in an area not formerly known for condos.
Another market surprise is 102 Fulton Street Fulton Street is a common name..
In New York City, the name is frequently associated with Robert Fulton, who invented a steam boat.
These trends have also lured owners of rental buildings into the condo conversion Generally stated, a condo conversion is a process of entitling an income property or other lands currently held under one title to convert from sole ownership of the entire property (which often already is a multi unit property) into individual for sale units. market. One such recent example is the Devon Condominium on 34th Street between Second and First Avenues. The owners converted a 206 unit rental building into condominiums while redesigning the lobby and the majority of the units to satisfy the taste of the most discerning luxury condominium buyer.
Within Devon's first month of opening in a traditionally prime rental neighborhood, Citi Habitats, Devon's exclusive sales and marketing agent, sold more than 20 apartments there, proof that there is an unprecedented demand for condominiums.
Recent statistics show that the two hottest residential neighborhoods right now for new construction or conversion of condos continue to be TriBeCa and Chelsea. While there are few lofts available in these popular areas, the need for luxury residences dictates that loft-style condominiums be created, spawning desirable new neighborhoods within these greater neighborhoods.
Recently, there has been a concentrated explosion of growth in an area known as TriBeCa North--some call it The Triangle Within the Triangle--which is geographically bound by Canal Street Canal Street may refer to:
River, New York, U.S. Originating in the Adirondack Mountains and flowing for about 315 mi (507 km) to New York City, it was named for Henry Hudson, who explored it in 1609. Dutch settlement of the Hudson valley began in 1629. and East to Varick Street. Condominium loft-style buildings like The Hubert, The Sugar Warehouse, The Atalanta, Cobblestone Lofts, and the nearby Ice House have all recently come on the market priced at $795 to $1,300 per square foot, and many have already sold out.
At the center of it all is TriBeCa's newest historic landmark building--48 Laight. Scheduled to break ground in September, the building was unanimously approved by the 12 member Landmark Preservation Committee, and has been praised by the group as a "modern classic" for its integrated use of traditional and modern materials, including limestone, manganese manganese (măng`gənēs, măn`–) [Lat.,=magnet], metallic chemical element; symbol Mn; at. no. 25; at. wt. 54.938; m.p. about 1,244°C;; b.p. about 1,962°C;; sp. gr. 7.2 to 7. ironspot brick, and stainless steel stainless steel: see steel.
Any of a family of alloy steels usually containing 10–30% chromium. The presence of chromium, together with low carbon content, gives remarkable resistance to corrosion and heat. . 48 Laight will have two and three bedroom loft-style residences and a spectacular penthouse penthouse
Enclosed area on top of a building. A penthouse can be an apartment on the roof or top floor of a building or a structure on the roof housing the top of an elevator shaft, air-conditioning equipment, or stairs leading to the roof. , all with unprecedented light and airy views. Developers are able to build this type of product because prices are strong enough to sustain such top quality.
The Triangle Within the Triangle is so desirable in part due to a new esplanade being built to the West in Hudson River Park Hudson River Park is a waterside park on the Hudson River that extends from 59th Street south to Battery Park in the New York City borough of Manhattan. Bicycle and pedestrian paths span the park north to south, opening up the waterfront for recreational use. . Aside from the world class attractions within TriBeCa, the neighborhood is convenient to its sister SoHo, a mecca of retail, arts and entertainment. Also close by is NoLita, an ubercool enclave of boutiques and eateries.
Another budding neighborhood within a neighborhood is known as The Barney's District in Chelsea. This includes the area bordered by 17th and 20th Streets along Sixth, Seventh and Eighth Avenues. The Chelsea Mercantile, The Chelsea Quarter, Grand Chelsea, Chelsea 121, The Campiello Collection, and 9 West 20th Street are among the comparable condos and loft-style condo residences in the district.
Many of those Barney's District buildings have completely sold out with the exception of the penthouses. When developers initially designed the condos, there was a robust penthouse market that was expected to fetch $1,200 to $1,500 per square foot, while the rest of the units were listed at around $700.
Since then, the smaller units have actually been selling for up to $800 a square foot, and developers have felt resistance selling penthouses as great as 3,500 square feet for their intended selling price.
Overall, the current demand for single units priced over $2 million is weak, and more than 85% of the sales market volume citywide is priced in the $250,000 to $800,000 range. The reality is that although people are choosing real estate as a viable avenue for investment, most people still do not have the $600,000 to $700,000 in disposable cash needed to buy an apartment in the $2 million plus price range.
My prediction is that the sales market will experience a halt if and when interest rates go up.
However, it is possible that the market will forgo a halt and price correction altogether, if the economy comes roaring back before those interest rates increase dramatically.
If this happens, the New York New York, state, United States
New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of real estate market will have effectively defied all economic principles and will have established a precedent never before seen, because it will have thrived and prospered through the pitfalls of a double dip recession Double Dip Recession
When the gross domestic product (GDP) growth slides back to negative after a quarter or two of brief positive growth. In other words, a recession followed by a short-lived recovery, followed by another recession. .
At Citi Habitats, our sales business has more than doubled in the last two years; our agents are selling at least two apartments per day, evidence that the demand for sales is real. Even in the traditionally slower summer months, business has grown at a record-breaking pace.
My outlook for the near future of the real estate sales market is incredibly bright. I truly believe that New York has been tested and pushed to its maximum limits. Major events like 9/11, the loss of over 125,000 jobs, the correction of the rental market, a mayoral change, corporate scandals A corporate scandal is a scandal involving allegations of unethical behavior by people acting within or on behalf of a corporation. A corporate scandal sometimes involves accounting fraud of some sort. , the war in Iraq, have all greatly affected the New Yorkers, and still the real estate market stands strong.
ANDREW HEIBERGER, PRESIDENT, CITI HABITATS, INC inc - /ink/ increment, i.e. increase by one. Especially used by assembly programmers, as many assembly languages have an "inc" mnemonic.
Antonym: dec. .