Wealthy Buyers and Foreign Investors Buy Big in NY

As home prices dissipate in many areas of the country, condo prices in New York, specifically Manhattan, rose 28% in the first quarter of this year as compare to the same quarter in 2006.  New York has variations in attached for-sale housing…apartments, condos, and co-ops.  New York condos are hotter than ever because there is no shortage of wealthy buyers in the city as well as foreign buy/investors that have been snatching up massive multi-million dollar units.    Everyone loves the new condos for all the obvious reasons and co-ops have been shooting themselves in the foot so to speak with too many regulars and demands for liquidity and assets.  The new condo developments offer all of the great amenities you hear about:  24 concierge services, spas, pet care, etc.  The prices of course have been sky-rocketing, but the demand and absorption has far from slowed. Co-ops on the other hand have been passed up by buyers and investors for the new developments.  Foreign investors who are sinking millions into New York and buying large and extravagant condominiums, have passed on co-ops assuming they will not be approved by the boards anyway.  Many extremely wealthy individuals with solid portfolios and plenty of assets are turned away for no reason and very little explanation.  Co-op boards have such convoluted restrictions…and let’s be honest, a lot of it is just plain politics…that people don’t even want to consider them anymore.  Not to mention, most co-ops are extremely old buildings with constant maintenance issues and pre-war construction dates!  The fastest growing price range for New York condos is in the entry level studios and one bedrooms.  New developments like The Visionaire in Battery Park, and Park Avenue Place have condos starting in the $600K to $800K range but the level of luxury, finishes, and locations are unbeatable.  Absorption of units in new York is still very high as compared to other major markets in the country.  Currently, Manhattan has over 5,000 condos for sale which is about 2,500 units lower than the same time last year.  The level of new construction though has not slowed, which means people are still buying!