New York luxury market is world’s third priciest

New York City’s luxury market was less busy last year than in 2021 but still outpaced all others in the United States and all but two worldwide. 

Prices for prime property rose 2.7 percent year-over-year in New York, according to Knight Frank’s annual wealth report with Douglas Elliman. Every 355 square feet of prime property in New York City cost buyers $1 million, beating out London for the third priciest spot behind Monaco and Hong Kong. 

New York’s luxury market closely rivaled the English capital’s for volume, notching 244 sales in the super-prime category — defined in the report as $10 million or more — and 43 in the ultra-prime category of $25 million or more. 

Los Angeles, Miami and Palm Beach, and Broward County were the other U.S. markets that claimed the most deals in the categories. L.A. had 225 super-prime deals and 39 in the ultra-prime category. 

Overall, however, it was a down year for the luxury market compared to the blockbuster 2021.

In 2022, there were roughly 1,400 sales of $10 million or more across the 10 global markets the Knight Frank report covered. While that was 49 percent higher than in 2019, it was down 33 percent from the category’s record in 2021, when there were more than 2,000 sales that hit the $10 million threshold.

The research firm said 2023 likely holds a time for normalization as the market comes down to earth from its pandemic-era surge to confront economic headwinds. 

“While a slowdown in high-end sales is likely this year, the reopening of China and ongoing appetite for lifestyle-led purchases will support activity,” said Liam Bailey, global head of research at Knight Frank. 

As for the world’s priciest real estate by foot, New York followed Monaco, where $1 million only netted a buyer approximately 183 square feet, and Hong Kong, where $1 million could purchase 226 square feet of prime property. 

— Holden Walter-Warner