Apartment prices top $1.1 million
New York- The average price of a Manhattan apartment rose to more than $1.14 million in the fourth quarter of last year, up 5% compared to the same period the year before, according to two new real estate reports.
The median price for the apartments was $760,000, a new record, beating the figure from 2005 by 9%, said the reports released yesterday. The median value is the middle price, at which half the sales are higher and half are lower.
The median price is also an important indicator of a market’s stability, said Greg Heym, who authored the reports for two Manhattan real estate firms, Brown Harris Stevens and Halstead Property, Heym is the chief economist for Terra Holdings, which owns both firms.
Heym, who also serves on the city’s Economic Advisory Panel, said Manhattan is experiencing a more balanced market , meaning that price increases have become more sustainable-unlike in 2004, when double-digit gains were common.
There reports also reflect the New York market’s resilience in the fact of a nationwide housing slump.
One of the biggest price surges took place on the Upper West Side, where four-bedroom and larger apartment cost an average of $5.7 million, or a 48% increase over the fourth quarter from 2005.
An average price of an apartment with three or more bedroom on Upper East Side was about $3.8million, up 22%.
The average price per square foot in Manhattan rose to $1,050 (the equilvalent of 404,000 baht per square metre), topping $979 in the fourth quarter a year ago and setting a new high.
Heym said he “doesn’t see prices softening going into 2007 thanks to solid job growth in the city, a healthy economy and low interest rates ”All of those factors, he said, are driving the market.
“It looks like demand will remain pretty strong.” He said.
Heym added that record Wall Street bonuses, expected to top nearly$24 billion, also should buoy the housing market across the board.
Both reports were based on 2,364 reported sales. A