Chinese buyers push up NYC condo prices
Patrick W ONeill
New York City prices continue to climb buoyed by the lack of inventory and international demand. The condominium median price of US$1,100,000 is up 4.8 per cent compared to last quarter, according to a recent report released by Prudential Douglas Elliman Real Estate. The price increase follows a steady climb that began after the market reached bottom in late 2009.
Fuelled partially by Chinese investment, the number of condominium sales surged 22.1 per cent over the previous quarter to 1,132 sales. Compared to 2009, the number of sales for the quarter is up 41 per cent. Local experts estimate that Chinese investors accounted for over 30 per cent of the luxury sales during the period.
Chinese investment in Manhattan has increased over 100 per cent in the past three years and is expected to double this year. The National Association of Realtors reports that Chinese investors are now the second largest international buying segment in the United States.
The surge in sales has driven inventory down 24.3 per cent compared to last quarter and down 36 per cent since 2009. The large amounts of new development inventory that built up after the property crash have been mostly absorbed. Only a handful of new developments still have remaining inventory. Many buyers are again purchasing off-plan developments as confidence is back in the market.