Manhattan apartment sellers still think they’ll make a 40% return in 5 years

Their aspirations don't quite confer with the reality of the market

TRD New York /
Dec.December 01, 2016 01:41 PM

Despite all evidence pointing to a cooling property market in Manhattan, reality hasn’t quite sunk in for some sellers in the borough. Many still expect to make at least a 40 percent return on apartments they bought just over five years ago.

Through September of this year, sellers of homes listed for less than $3 million sought a median price 47 percent higher than what they paid in 2010, Bloomberg reported. Based on data from StreetEasy, sellers who bought homes in 2011 listed them for a median 42 percent markup, and those who bought in 2012 listed for a 35 percent increase.

The aggressive pricing and high expectations, however, don’t match with reality. “In my experience, it takes sellers a good one to two and a half years to believe in the new market,” said Jonathan Miller, the CEO of appraisal firm Miller Samuel. “The buyers are with the program immediately.”

In the third quarter of 2016, fewer properties were sold above the initial asking price and discounts were on the rise. Only 17.4 percent of residential sales were above the listing price — compared to 31 percent at the same time in 2015, as The Real Deal reported in October.  Landlords in the borough are also offering concessions to renters at record levels. Just under 24 percent of all Manhattan leases signed in October had some type of landlord concession, which marks a high of at least six years.

Brokers told Bloomberg that while buyers do not feel the urgency of previous years, there are some properties types that continue to sell well. One-bedroom homes for less than $1.2 million are very popular, according to the publication, as well as apartments that don’t need to renovated. [Bloomberg]Miriam Hall


Related Articles

arrow_forward_ios
(Images courtesy of Victor Group)

The Getty condo chops prices up to 53%

The Getty condo chops prices up to 53%
442 Union Street and 257 Berry Street (Google Maps)

Brooklyn’s luxury market reaches new pandemic high

Brooklyn’s luxury market reaches new pandemic high
(iStock)

Here’s where resi prices fell the most in Miami in Q2

Here’s where resi prices fell the most in Miami in Q2
Marwan Kheireddine (inset), Jennifer Lawrence and 400 East 67th Street (Getty, Compass, BDL Accelerate)

Jennifer Lawrence’s Upper East Side PH sold at 37% loss

Jennifer Lawrence’s Upper East Side PH sold at 37% loss
Senate Minority Leader Chuck Schumer and Senate Majority Leader Mitch McConnell (Schumer by Tasos Katopodis/Getty Images; McConnell by Ting Shen/Xinhua via Getty)

Schumer v. McConnell on SALT: Who’s gonna give?

Schumer v. McConnell on SALT: Who’s gonna give?
111 Leroy Street and 817 Fifth Avenue (StreetEasy, Google Maps)

Luxury deals plummet in Manhattan — again

Luxury deals plummet in Manhattan — again
From left: Jared Kushner, 715 Park Avenue, Deutsche Bank CEO Christian Sewing, and Rosemary Vrablic (Credits: Kushner by BRENDAN SMIALOWSKI/AFP via Getty Images; 715 Park via Google Maps; Sewing by by Thomas Lohnes/Getty Images; Vrablic by PAUL LAURIE/Patrick McMullan via Getty Images)

Apartment sale to banker for Trump and Kushner probed

Apartment sale to banker for Trump and Kushner probed
Renderings of 17 Jane Street and Edward J. Minskoff (Renderings via Kristen Krajewski; Minksoff by Patrick McMullan/Patrick McMullan via Getty Images)

Minskoff sells first condo in West Village project for $22M

Minskoff sells first condo in West Village project for $22M
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...