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Prices Drop for Manhattan Apartment Sales in Fourth Quarter

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Tower Verre a new development on Billionares’ Row still under construction. (Photo Credit: Wikipedia)

The market for apartments in Manhattan has experienced drops-in prices for sales during the last quarter of 2017.

According to an article in the Wall Street Journal, for 2017’s fourth quarter the median price at $1.08 million for an apartment in Manhattan, while this is an increase of 4.6 percent when compared to the fourth quarter of 2016, it is a marked 9.8 percent decrease when compared to the second quarter of 2017. The market has also slowed for ultraluxury pads in Manhattan, with a fall in the number of contracts signed for apartments priced at $10 million or more during October and November.

The analysis conducted by the WSJ found that while there were record-setting median prices for condos and co-ops this year, with condo prices reaching $1.7 million and co-ops striking $800,000, when compared to last year the price of new developments declined 0.6 percent, with a median price of $2.6 million.

The Real Deal reports, “The two main factors behind the drop were an oversaturation of pricey apartments in Manhattan and anxiety over what would end up being included in the new GOP tax law. The Manhattan real estate market could pick up next year as the implications of the new law become clearer.”

Corcoran Group president Pamela Liebman told the WSJ that her firm lost out on several deals at the end of this year as a result of the new tax bill.

She said, “We lost a lot of deals in the fourth quarter, while people waited to see the outcome of the tax bill. Now that the uncertainty is gone they will be able to make a decision.”

By Charles Bernstein

 

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