Manhattan Sales Surge as Foreigners Bag Bargains
06 October 2011
More and more investors from the UK and around the world are travelling to America to invest in bargain property.
Until now the reports of surging sales have been limited to Miami, wider Florida, Atlanta, and less so to Colorado and Las Vegas, but apparently they have also been surging in Manhattan as well.
According to Douglas ELliman from Prudential, 3,106 units were sold in Manhattan in the third quarter, an increase of 17.2% on the quarter, and 16.7% on the year. Loft sales saw the biggest jump with a 38.9% year on year increase, closely followed by condominiums with a 33.4% growth year on year.
Overseas buyers are driving the sales growth according to Jonathan Miller, president and chief executive of real estate consultant Miller Samuel Inc.
"A lot of that has to do with the weak dollar and foreign buyers buying condominiums," he said.
Meanwhile, Gregory Heym, chief economist of Halstead Property, put the growth down to Manhattan being perceived as a safe haven against the current economic turbulence.
"The dollar is cheap. They can get more for their money. And there's a great deal of confidence in New York," added Hall Willkie, president of Brown Harris Stevens.
This is a common trend that is emerging, whereby the world's most prestigious locations are seeing much faster recoveries than anywhere else. Manhattan certainly fits into the category of prestigious locations, and investors know that it is a rare opportunity to find such bargains in locations like this, giving a potentially huge upside when the US recovers.