Manhattan real estate prices are experiencing a sudden surge, as buyers return to the city and boost demand for extravagant and costly properties, a new report states.
The median resale prices for Manhattan apartments hit $999,000 in the second quarter - an all-time high since before the COVID-19 pandemic hit - according to the report from Douglas Elliman and Miller Samue.
Average sale prices in the area rose 12% in the quarter, surpassing $1.9 million.
The buying frenzy comes despite a net 70,000 New Yorkers fleeing the city at the height of the pandemic - costing the city roughly $34 billion in lost income, according to estimates from Unacast.
Wealthy neighborhoods, like Hell's Kitchen and the Upper East Side, saw the biggest exodus with nearly 11% of its residents fleeing, according to research from CRBE. Most of those are young professionals who work in financial hubs of Midtown and the Financial District, as well as creatives working in Broadway Theaters.
According to the report from Douglas Elliman and Miller Samuel, median resale prices for Manhattan apartments hit $999,000 in the second quarter - an all-time high since before the COVID-19 pandemic hit. (Pictured: Morgan House at 153 E 87th St on the Upper East Side which currently has a one-bedroom apartment under contract for $999,000)
Average sale prices in the area rose 12% in the quarter, surpassing $1.9 million. Pictured: Morgan House at 153 E 87th St on the Upper East Side
Mayor Bill de Blasio has since lauded the city's comeback from the pandemic with more than 4.1 million residents fully vaccinated despite a massive spike in violent crime, including a 12% increase in murders. The state lifted its mask mandate and other pandemic restrictions in May.
But while residential properties are being snapped up, 19% of office buildings in Manhattan are still completely vacant. And business leaders have warned that dozens of top companies which operate out of the city's main financial hubs are on the verge of departing for Florida on the back of New York state proposing a $7 billion tax hike.
Among those considering a move to Florida is Goldman Sachs, which maintains its head office at an upscale address in Lower Manhattan.
There was a 150% gain from last year, with 3,417 sales in the second quarter due to restrictions preventing apartments from being shown for much of the quarter, according to the report
The influx in property buying has also led to fewer apartments on the market
Experts say the spike in real estate value indicates that Manhattan real estate is swiftly recovering, as more families look to trade up to larger apartments, while buyers hope to take advantage of lower prices and low mortgage rates.
There was a 150% gain from last year, with 3,417 sales in the second quarter due to restrictions preventing apartments from being shown for much of the quarter, according to the report.
'It's a sign of the frenzy and intensity of the market,' Jonathan Miller, CEO of real estate appraisal firm Miller Samuel told CNBC. 'It's rebounding much faster than most participants expected.'
According to Douglas Elliman listings, a two-bedroom apartment, one bathroom apartment in the Upper East Side is currently under contract for $999,000. On the Upper West Side, a second-floor two-bedroom, two-bathroom apartment has been sold for $1.08 million. Further south, in Hudson Yards, a corner one-bedroom, one-bath apartment in a 30-floor high-rise, complete with a gym and pool facilities, has also sold for $999,000.
Two other apartments listed on Douglas Elliman sold in Harlem and the Upper West Side also sold for exactly the median price. The Harlem apartment, located on Adam Clayton Powell Jr. Blvd, is boasts a massive 1,300-square feet with three bedrooms and two bathrooms, and 10-foot ceilings.
Another, in Greenwich Village - a one-bedroom loft marketed as being in mint condition on busy Broadway - also sold for $999,000.
In Hudson Yards, a corner one-bedroom, one-bath apartment in a 30-floor high-rise,
