Manhattan multifamily building prices fall 12 percent

TRD New York /
Nov.November 14, 2008 02:50 PM

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.

Related Articles

(Image by Wolfgang & Hite via Dezeen)

Hudson Yards megadevelopment inspires a new line of sex toys

Cammeby's International Group founder Rubin Schron and, from top: 194-05 67th Avenue, 189-15 73rd Avenue and 64-05 186th Lane (Credit: Google Maps)

Ruby Schron lands $500M refi for sprawling Queens apartment portfolio

Wendy Silverstein (Credit: Getty Images)

Wendy Silverstein, co-head of WeWork’s real-estate fund, is out

Cristiano Moura (Credit: Christie’s Real Estate and iStock)

Viral Instagram post leads to arrest, assault charge for former Christie’s agent

Amazon CEO Jeff Bezos and Hudson Yards (Credit: Getty Images and Wikipedia)

Amazon takes big new office space near Hudson Yards

A&E Real Estate Holdings principal Douglas Eisenberg and the properties (Credit: The Rego Park 18 Portfolio)

Deutsche Bank provided A&E $97M in financing for big Rego Park buy

Billy Macklowe and Key Food at 120 Fifth Avenue in Brooklyn (Credit: Getty Images and Google Maps)

Billy Macklowe looking to break into Brooklyn

From left: Daniel Shirazi, and Robert Khodadadian, with 530 West 25th Street

Feil Organization buys Chelsea office building for $72M