John Mehigan, a broker at Domain Properties, was about to close a deal on a seventh-floor apartment at 21 East 22nd Street earlier this year when it fell through.
The buyer heard about a 40-story residential tower going up at 20 East 23rd Street and decided he didn’t want an obscured view from the pied-a-terre, which faced north.
“He had a cityscape view and partial view of [Madison Square] Park which would have been completely obstructed,” Mehigan said. “He didn’t want to be looking into someone else’s apartment or have someone looking in on him.”
The views buyers are willing to pay top dollar for are constantly changing with the proliferation of new residential development throughout the city, like the 23rd Street building.
“The only thing certain is that views are never certain,” said Jonathan Miller, president of Miller Samuel appraisers. “When brokers sell a view, there is no guarantee; they sell it for how it is right now.”
Despite the occasional impermanence of views, apartment listings are quick to mention their scenic sights. But as more new condo towers rise in Manhattan, there will be fewer views in existing buildings and they will become more and more valuable, said Jeffrey Jackson, chairman of appraisal firm Mitchell, Maxwell and Jackson.
The value of views has risen over the past two decades, Jackson said (see below). “We are more appreciative of views today as an urban society than in the past,” he said.
To ensure the longevity of a view, Miller suggests having a zoning attorney look at properties in the sight line of the apartment in question. “So many times, people already know how many stories a building will be,” he said.
But, Miller added, it can be hard to determine whether to buy an expensive property when buyers are uncomfortable not knowing exactly how the sight line will turn out.
Residents near a public park or on the waterfront may have a more secure view, but that is not always the case. For years, residents of 25 Central Park West had views of the park over the empty lot that’s now the home to 15 Central Park West, whose advertisements now boast full views of Central Park.
“Many people buy apartments based on what is physically there and not what potentially could be there,” Jackson said.
Completed in 2001, the development of Trump World Tower on First Avenue had residents of 100 United Nations Plaza bearing price reductions and difficulties selling their units. However, there are times where view blocking can increase the property value, according to Corcoran Group senior vice president Greg Kammerer.
“The construction of the Lincoln Towers [on the Upper West Side] worked as a positive,” Kammerer said. “The expensive limestone buildings enhanced the neighborhood.”
When an entire complex of properties like the Lincoln Towers is developed, it elevates the value of neighboring properties, translating into higher property values.
“There is a loss of scenic view but the association to the new units and upgrade in retail services increases the property value,” Miller said. “However, more times than not, the view is blocked, but the neighborhood remains unchanged.”
More vulnerable to changes are buildings with views facing the lot line. According to Miller, the building code requires windows to have chicken wire glass when zoning allows another building to be right up against it. “Enjoy the view while it lasts,” he said. “It has a shorter time frame.”
Buyers should also be wary of low-rise buildings, gas stations and garages that may be developed.
Whatever may lay ahead, Miller maintains that views in terms of value to an apartment carry the most weight at the point of sale, and changes in views matter less over time. “It’s one of those things that it’s just a factor of life here; the skyline is not fixed,” he said. “Over the years, it’s been incremental changes, but it’s constantly occurring.”
Manhattan views grow pricier
Views have become an increasingly important factor in apartment value in Manhattan. “The value of a view has increased a magnitude of two to five times in the past 10 years,” said Jeffrey Jackson, chairman of appraiser Mitchell, Maxwell and Jackson. “Having good natural light improves people’s state of mind. We are more concerned about having a view than before.”
An analysis by Mitchell, Maxwell and Jackson shows the price differential between Manhattan apartments with a view and without a view growing over the last two decades.
In 1983, apartments without views compared to apartments with views had a 10 percent difference in the price. But in 2005, the same apartments were resold with a 38 percent difference in price, the analysis found.
Another study by the appraisal firm looked at three of developer Donald Trump’s condominium buildings.
In 1983, the difference in prices of a two-bedroom apartment with a view was 31 percent. In 1995, the difference was 71 percent, and in 2004, the difference in prices for an apartment with a view was 148 percent.
“The markets now recognize the value of light and views and developers now price much more aggressively for this,” Jackson said.
The impact of view on overall property values can vary, with breathtaking views making up 20 to 40 percent of a given apartment’s value, said Jonathan Miller, president of appraisal firm Miller Samuel.
The size of the view determines how valuable it is to the overall apartment. A river view from a studio would have a smaller value in dollar amount in comparison to the exposure of an eight-room apartment.