Uptown chic vs. Downtown's 's IPO's.

In days gone by, a pre-war classic six on the Upper East Side of New York City was the ultimate statement of "Je suis arrive!." Although the Upper East Side will never loose its cache, especially among the investment bankers, the dominant trend in the first quarter of the year 2000 has been the dot-com world of unfinished, chic loft apartments in Downtown neighborhoods like SoHo, Tribeca, Lolita, and Chelsea, where prices are up 19 percent over last year.

Uptown is experiencing a market where Fifth Avenue prices gained 25 percent over last year and the average price tops $2 million. With an influx of IPO cash, both investment bankers and dot-corn visionaries are striving to fulfill their real estate dreams in any neighborhood they choose - if they could just find an apartment before it gets snapped up by someone else.

Record high sale prices drove the average apartment price up 19 percent marketwide, the largest percentage gain in 11 years. In this market sellers rule more than ever. My most important advice for sellers is, don't put your place on the market until you are sure you have a new place into which you can move. If you ignore this simple advice, you will be homeless.

Demand for large-sized homes throughout Manhattan was met by short supply, as indicated by the 26 percent rise in the price for apartments with three or more bedrooms. Families are coming to New York from everywhere. We've seen buyers from southern states, from the West Coast and from the New York suburbs. And it seems like every other buyer is coming with the requisite 2.5 kids.

Individual owners chose to sell rather than rent, which contributed to the shortage in ultra-luxury and luxury rentals. This has driven the differential between rental rates and the cost of ownership to new highs and strongly favors those who own investment units.

The average New York buyer is 38 years old, single, and has an income of $342,000, with a net worth of $2.531 million. Despite that, our research shows that some New York neighborhoods are populated by as any as 11 percent more women than men.

Buyers are relocating for the same reasons as ever, and few seem intimidated by the rising prices. Buyers want to owning rather than rent, they want a better location specially downtown - and they want more space.

How do our buyers pick their apartment? They pick it because of the space, which is always chronically short. Buyers also rank the view, natural light and neighborhood charm as top reasons for picking the apartment they buy.

My analysis shows all these trends coming together in one place: Downtown Manhattan. Downtown is the new Upper East Side. It is where all the young people want to live, where the most exciting new lofts are located and promises to show price, gains over the rest of the year 2000.