RESIDENTIAL RESEARCH

NEW YORK INSIGHT 2017 ANALYSIS OF NEW YORK’S PRIME RESIDENTIAL MARKET

PRICE PERFORMANCE DEMAND AND SUPPLY NEIGHBOURHOODS TO WATCH NEW YORK INSIGHT 2017 RESEARCH

Central Park Upper East Queens Upper Side West Long Island City Side Pushing Boundaries $ $1,402 14.1% Brooklyn Despite the uncertainty and volatility that defined 2016, the real Midtown estate market in New York has been strong and even broke several Williamsburg & record highs, thanks, in large part to new development sales. Greenpoint

$ $1,628 -12.6%

destination for the young and artistic Hell’s Market activity has shifted to something Hudson Yards, which will bring 5,000 Kitchen Northeast Brooklyn more stable and moderate from what residential units to the market. was Williamsburg. Just a short ride on seemed frenzied, frothy and perhaps the L Train, Williamsburg led the way for $ $1,402 4.6% unsustainable. While prices have many hip Brooklyn neighbourhoods and Areas to watch Chelsea not softened, steady activity during helped drive prices in the borough for Lower East Side/East Village these turbulent times may prove to be over a decade. Brownstone highly desirable. This area has been home to New York’s Grammercy Brooklyn nightlife for decades and was always the Long Island City Greenwich $ $1,542 -3.6% Price performance place to be for hipsters and trendsetters, Long Island City (“LIC”) has evolved Village East Village Prices throughout much of but the opening of the Ludlow Hotel and from an industrial neighbourhood and Brooklyn increased in 2016—with Dirty French sparked the interest of the known for its large warehouses, parking Red Hook to median price, average price, and price highly fashionable jet-set crowd. Close lots and film studios into a premier Boerum Hill to SoHo, NoLita and Chinatown, the per square foot all reaching records. residential neighbourhood filled with Tribeca Lower $ $1,448 29.9% For the first time ever, the average price neighbourhood was once dominated by galleries, museums and a thriving arts East in Manhattan exceeded US$2 million. walk ups (i.e.old apartment buildings with community. Offering a more affordable Side These records were largely driven no lifts), but new developments like Essex price point we have seen great interest by the number of new development Crossing are changing the landscape. in the new developments of The Dutch condominium transactions, particularly and Factory House. Financial in Downtown West and Midtown West. District And while activity may be moderating, Lower Manhattan – predominately Market outlook prices are yet to follow suit. the Financial District – is a thriving Perhaps due to the global turbulence neighbourhood for more than just the we saw for much of 2016, New York, Demand & Supply set. The recently-opened the premier financial capital of the world, Low interest rates and a steady jobs World Trade Center Transportation Hub, is largely regarded as a safe-haven for picture have kept demand robust called the Oculus, has increased access foreign buyers who often have to Manhattan throughout 2016. Despite the stronger and connectivity to the area. With a contend with taxation issues and/or dollar, foreign interest has held up with broad mix of restaurants and bars on instability in other cities around the Midtown West Lower Manhattan international buyers making up 25% of the the waterfront and new state-of-the- world. In many cases, these buyers $ $4,179 13.9% $ $2,098 10.5% condominium resale market and 35% of art schools opening in the area, Lower are shaking off weaker currency demand for new development sales. Manhattan has become a much sought- exchanges for the strength of New York after location. real estate. Midtown East Downtown East Demand has been particularly strong for $2,224 16.3% $3,311 -9.4% new developments in the sub-US$3m Seizing on the revitalisation of Lower Furthermore, low interest rates and a $ $ price segment, while supply at this price Manhattan, developers have added healthy job market have spurred many point has been particularly tight. several luxury high-rises to the area long-term renters into first-time buyers Downtown West including 1 Seaport, One Wall meaning properties priced below US$3 Since the financial crisis, supply has $ $3,441 28.8% Street, 125 and million move fast. been low and had been in decline. It is KEY 45 . only recently that supply is beginning to The strong underpinnings of the U.S. 2016 Median increase, with more new developments economy and historically low interest rates $ US$ per sq ft Brooklyn in the pipeline – a major driver for the are likely to be maintained for some time Source: Douglas Elliman 2016 % change market. One such development aiding One of the first neighbourhoods that contributing to a stable real estate market Source: All data corresponds to luxury condos only which in sales (YOY) supply is the mass regeneration of ignited Brooklyn’s boom and the for the foreseeable future. represents top 10 percentile of most sales each year

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