Success or Excess: What’s Behind Manhattan’s New Residential Sales Record?
Manhattan added a new superlative recently when the average price for a residence was reported to have hit $1.7 million, the highest ever. The milestone was hailed as proof the real estate market has bounced back from the 2008 recession, and indeed, the good times seem to have returned for some, including the real estate industry. But can anyone who doesn’t run a hedge fund still get in?
The Eight-Figure Apartment
A key reason for the gaudy numbers is that the higher end of the island’s real estate market is exploding. In yet another indicator that the richest of the rich have had the best recession recovery, sales of $10 million residences have doubled since 2009. (That’s adjusted for inflation, meaning that the 2009 numbers include anything that was over $9 million at the time.)
Ten $10 to #15 million apartments sold in this building, which languished unfinished for years after the 2008 bust.
COMEBACK One Madison was built in 2007 but foundered during the recession and remained unfinished for several years. Buyers, which have included Tom Brady and Rupert Murdoch, are now scooping up its eight-figure apartments, many at double their 2007 prices.