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NEW YORK CO-OP VALUES FELL 18 PERCENT IN 1991; 'HIGH-END' DISTRICTS POST BIGGEST DROPS IN VALUES, RENTS

 NEW YORK CO-OP VALUES FELL 18 PERCENT IN 1991;
 'HIGH-END' DISTRICTS POST BIGGEST DROPS IN VALUES, RENTS
 NEW YORK, Jan. 15 /PRNewswire/ -- The cost of purchasing a New York co-op apartment dropped by 18.4 percent during 1991, with the most significant declines occurring in the Upper East Side, according to statistics compiled by the National Cooperative Bank (NCB), one of the largest providers of underlying mortgage financing to real estate co-ops.
 The value of a New York co-op fell to an average of $63,552 per room in 1991, down from $77,858 per room in 1990, according to NCB. Rents at co-op buildings declined only one-third as much to $461 from $491 per room -- a drop of 6.3 percent.
 Grace Ann Huebscher, senior vice president of NCB, said the recession and weak condition of real estate in the Northeast had an impact on the New York area residential co-op market in 1991. "New York's most exclusive neighborhoods enjoyed the biggest gains during the 'boom' years of the eighties, and, to no surprise, have weakened the most in the current downcycle," Huebscher noted.
 The Upper East Side continued to boast the highest co-op values, at $94,321 per room. A year earlier, however, the average co-op was valued at $155,047 per room, representing a decline of 39.2 percent, according to NCB statistics.
 Bucking the downward trend in values was Lower Manhattan. Co-ops located below 14th Street actually saw values rise 18.6 percent to an average of $56,823 per room. Huebscher said strong demand for loft co- ops in neighborhoods like SoHo and TriBeCa accounted for the increase. Co-op values also increased slightly in Midtown Manhattan (14th to 56th Streets) by 3.23 percent to $45,068 per room.
 The financial institution's analysis showed that in only two neighborhoods, the cost of renting a co-op was higher in 1991 than the year before. These neighborhoods were the Upper West Side, where the average rent of $572 per room increased 10.2 percent, and Lower Manhattan, where rents were 10 percent higher at $465 per room.
 "While the rental market has softened, the decrease in rents has not been as pronounced as the drop in property valuations," Huebscher pointed out.
 As with values, rents showed the greatest slippage in the Upper East Side (off 28.9 percent). Midtown Manhattan rents were down by 8.6 percent.
 In the market for loft co-ops, primarily located in the SoHo, TriBeCa and Chelsea sections of Manhattan, rents were unchanged at $1.50 per square foot. Market values for loft co-ops declined less than the market average -- to $187 from $200 per square foot, a loss of 15 percent.
 The NCB Co-Op Market Index will be published semi-annually in January and July of each year. NCB derived its analysis from an average of values and rents of 888 New York area co-op properties in 1990 and 1991. Findings are based on a database of appraisals of co-op properties financed by NCB in the past two years as well as comparable co-op properties.
 NCB is one of the largest providers of co-op financing in the New York area, having originated more than $500 million in underlying mortgages since 1986.
 For additional information or a copy of the NCB Co-Op Market Index, write: Grace Huebscher, National Cooperative Bank, 101 East 52nd St., New York, NY 10022.
 NCB NEW YORK CO-OP INDEX
 Market Value Per Room 1990 1991 Pct. Change
 Total New York Area(A) $77,858 $63,552 (18.4)
 Lower Manhattan 47,925 56,823 18.6
 Upper West Side 91,925 69,109 (24.8)
 Midtown Manhattan 43,660 45,068 3.2
 Upper East Side 155,047 94,321 (39.2)
 Rent Per Room 1990 1991 Pct. Change
 Total New York Area(A) $ 491 $ 461 (6.3)
 Lower Manhattan 423 465 10.0
 Upper West Side 519 572 10.2
 Midtown Manhattan 422 385 (8.6)
 Upper East Side 857 609 (28.9)
 Loft Co-ops 1990 1991 Pct. Change
 Rent (B) $1.50 $1.50 0.0
 Market value(B) 200 187 (15.0)
 Source: National Cooperative Bank
 (A) -- Neighborhood designations are comprised of the following:
 Total New York Area - Manhattan, Brooklyn, Queens, Westchester
 Lower Manhattan - South of 14th Street
 Midtown Manhattan - 14th Street to 56th Street
 Upper East Side - 56th Street to 96th Street; East of Central
 Park
 Upper West Side - 56th Street to 96th Street; West of Central
 Park
 Loft Co-ops - located primarily in SoHo, TriBeCa and Chelsea
 (B) -- Loft rents and values expressed in per square foot amounts
 -0- 1/15/92
 /CONTACT: Steve Iaco or Catherine Peters of Creamer Dickson Basford, 212-887-8640, for National Cooperative Bank/ CO: National Cooperative Bank ST: New York IN: FIN SU:


GK-OS -- NY015 -- 9872 01/15/92 09:28 EST
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