New York Property

manhattan-real-estate

The once thriving real estate market in New York’s prestigious Manhattan district has experienced a heavy blow in the last three months. Sales have gone down by 50% and prices have continued to sink, leaving owners little hope to sell their apartments for a nice profit.

Jonathan Miller, CEO of real estate appraiser Miller Samuel, stated: “Sales were off by 50% because of the weak economy, rising unemployment and, most important, the credit crunch.”

417 Fifth Ave New York

As we all know by know, times are tough. Signs of it are found everywhere we look – from flagging real estate prices to job losses and everything else in between. However, when a 40 storey skyscraper in the middle of New York sells for a measly $100,000 we can’t help but wonder what in the world is going on.

The tower is positioned right on a prime corner of real estate, close to the Museum of Modern Art and close to the Rockefeller Center and Central Park.

manhattan New York employees face the biggest unemployment rate since 2003 with a total of 8.1 percent of the workforce being out of a job. This has resulted in a slowing demand of rentals in the city and particularly in Manhattan. Figures have shown that rents have fallen by 5.9 percent since the same time last year in March 09.

The lack of demand is in direct relation to the current unemployment situation in the country and people’s need to make some serious decisions about the financial situation in their lives.

As more and more employees are forced from their jobs through job cuts, they struggle to come up with the finances to pay for rent in the city. Even so the average rent has declined tremendously for all types of apartments, vacancy rate has topped 2 percent for the fifth month in a row.

lower-manhattan Reports all over have confirmed what was beginning to shape up late last year; Manhattan real estate is tumbling downward at a rapid rate. Many Manhattan based agents in the business have never seen anything like this in the last 25 years.

Prices of high end Manhattan apartments that until late last year have always withstood  countrywide real estate price slumps are now coming down; sometimes by as much as 30%. This is great news for cash buyers as it puts the luxury townhouse and apartment market back on the map for many who previously couldn’t afford property in Manhattan.

A British banker put down a cool $5 million as a deposit for the entire 76th floor of AOL Time Warner’s new Manhattan skyscraper. He is apparently a REIT executive, but this hasn’t been confirmed since he is intending to keep the transaction private.

imageWhat we do know is that he will fork out a whopping US$ 45 million for this prestigious apartment floor, which includes floor to ceiling glass windows, plus another $15 million for the decorating work.

This puts New York back on the market and local Realtors hope it will enliven the luxury property market after news gets around.

The swanky $1.8 billion AOL Time Warner building on Columbus Circle is nearing completion and incorporates a 252,000 SQ. M vertical village in he middle of Manhattan. It is also the city’s largest commercial development since the WTC when it opened in the 1970s with twin 80-storey towers.

tribeca townhouses new york city

Located in the very heart of New York City, Tribeca Townhomes have been designed to combine contemporary urban design with environmental sustainability and eco-friendly living.

Paying homage to Lower Manhattan’s industrial past, the 6 one-, two- and three-bedroom properties are completed and have been constructed using traditional design elements such as limestone and architectural iron design.

New York City’s real estate is looking a bit shaky right now – especially Manhattan – since the second quarter figures were released. While Manhattan held its head high amidst the country wide housing disaster for the past three years, latest statistics have shown cracks appearing. So much so, that the 38% dump in sales was hard to overlook.

The Corcoran Group, New York’s biggest residential real estate group stated that this low is the biggest in five years. This is especially concerning since this low came right in the middle of the usual hottest property season.

Real estate magnate, Donald Trump is seeking billion dollar investments from the booming economic regions of the Arabian Gulf. Rodrigo Nino, president of Prodigy International, advisers to The Trump Organization said to the press on June 29th. “I expect to see at least $2bn of investment from the Middle East in the next 12 to 24 months.”

“We’re particularly targeting Middle East investors for our $2.5bn inventory in Manhattan and $1.5bn inventory in Panama,”  Nino told Zawya Dow Jones at the Dubai sales launch of the Trump Soho Hotel Condominium in New York.