The Real Deal New York

Manhattan multifamily building prices fall 12 percent

November 14, 2008 02:50PM
By Adam Pincus

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Price cuts hit the Manhattan multifamily market hard last quarter, according to a new report covering residential investment properties released by real estate analysis company PropertyShark.

While the median sales price for an apartment building fell 11.2 percent from the prior year quarter, the median price for each unit fell by 17.5 percent over the same period, the data released today showed.

At the same time, building sales volume, median sales price per building and median sales price per unit all declined citywide, according to the report, which examined multifamily sales greater than $10,000 in the five boroughs, but did not include package deals.

“The takeaway is that Manhattan is not immune, something everyone has been saying all along,” said Bill Staniford, CEO of PropertyShark. “I think we have seen a very significant run-up in pricing — a bubble — that will need a correction.”

In the five boroughs, building sales volume dropped 23 percent to 3,039 transactions; the median sales price per building dropped 9.1 percent to $590,000; and the median sales price per unit fell 8.1 percent to $245,000, the data showed.

Manhattan’s 17.5 percent drop in the third quarter to $283,430 when compared to the third-quarter 2007 was the steepest among the five boroughs, a sign that the credit crunch and general economic weakness have finally started to affect Manhattan, Staniford said. The outer boroughs saw more dramatic prices drops in earlier quarters, and he expects further price reductions throughout the city in the fourth quarter.

Between July and September, the median price per unit in Brooklyn was $250,000, down 4.8 percent from the same period last year.  In Queens, the median price was $264,285, down 9.6 percent year-over-year; in the Bronx it was $200,000, down 5.9 percent; and in Staten Island it was $215,000, down 15.4 percent, the report showed.

The number of sales in Manhattan fell by 36.2 percent from a year earlier to 132 sales, while in Brooklyn it dropped 24.7 percent to 1,189. In Queens the number of sales fell 16.3 percent to 1,107; in the Bronx it fell 27.4 percent to 374; and in Staten Island it was down 27.1 percent to 237 buildings, the data showed.

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