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Study: co-op housing suffers less in 1992.

The cost of purchasing a New York City co-op apartment dropped by 14.4 percent during 1992 -- an improvement over the 18.4 percent drop in 1991, according to data compiled by the National Cooperative Bank (NCB), one of the largest providers of underlying financing to real estate cooperatives.

While the overall index showed a decline, Brooklyn, Queens and Westchester all registered improvements. In addition, New York lofts and New York rentals showed improvement during 1992.

The value of a New York City co-op fell to an average of $54,430 per room in 1992, down from $63,552 per room in 1991. Rents at co-op buildings in New York City declined from $461 per room in 1991 to $432 per room in 1992. This 6.3 percent decline matched the 6.3 percent decline in 1991, following three' consecutive years of increases.

Although the overall average value per room fell in 1992, most neighborhoods have actually stabilized with the exception of mid-rise buildings in lower Manhattan (below 14th Street). Lower Manhattan values rose to $56,823 in 1991, an 18.6percent increase over 1990 but declined to $45,533 (19.9 percent) in 1992. The declines in the Upper East Side and Upper West Side have slowed substantially in 1992 dropping by a 5.O percent and 3.9 percent respectively compared with 39.2 percent and 24.8 percent in 1991.

Brooklyn, Queens

Values Improve

The Brooklyn and Queens neighborhoods represented in the Index experienced the greatest improvement in values during 1992 -- 11.9 percent. This increase in values is the first in three years, rising from $22,460 per room in 1991 to $25,123 in 1992. The other geographic area to see improvement was Midtown Manhattan with an 11.3 percent increase in market value per room to $50,145.

Westchester County statistics show a 7.5 percent increase in market values over 1991.

The lofts in lower Manhattan have done well. recovering from a 17.2 percent decline in 1991 to an increase in values of 5.9 percent in 1992. Loft co-op values which are located primarily in SoHo. TriBeCa and Chelsea, increased to $198 per square foot, up from $187 in 1991.

New York Rents Up

The NCB analysis showed that in three neighborhoods the cost of renting in New York City was higher in 1992 than the year before. Brooklyn/Queens rents were up 7.5percent at $238 per room, Midtown Manhattan increased by 9.0 percent at $420 per room.

Westchester showed a 5.9 percent increase at $269 per room. Rents showed the greatest decrease in Lower Manhattan (down 14.3 percent). The Upper Westside was down 4.2 percent and the Upper Eastside was down 2.7 percent.

Analyzing Three Years

of Data

Since 1988, NCB found the following:

* On average, in New York City, values have declined 36 percent from the high point per room of $84,473 (1989) to $54,430

* The Upper East Side high point market value per room was $155,047 (1990) and has since declined by 42 percent to $89,633 in 1992

* The Upper West Side high point market value per room was $91,925 (1990) and has since declined by 28 percent to $66,416 in 1992.

* Midtown Manhattan high point market value per room was $69,062 (1988) and has since declined by 27 percent to $50,145 in 1992

* Westchester high point market value per room was $31,239 (1990) and has since declined by 26 percent to $23,051 in 1992

NCB derived average values and rents for the 1991-1992 analysis from appraisals performed on close to 160 transactions and close to 900 resales.
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Title Annotation:study conducted by National Cooperative Bank finds smaller decrease in purchase cost for New York, New York apartment cooperatives in 1992 as compared to 1991
Publication:Real Estate Weekly
Date:Jan 13, 1993
Previous Article:Challenging 1993-94 tentative assessments.
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