The WSJ is reporting something that most New York real estate agents have known for a while: sales are strong, inventories are down, and prices are going up in Uptown Manhattan. After the sale of West 109th Street, a building of 40 rent-controlled units that has had a number of management issues in recent years, it seems that investors are ready and willing to take the plunge in the rental market uptown.
This isn’t surprising at all. Some investors have shied away from uptown, because the rest of Manhattan has seen higher rent increases than uptown, as the WSJ reports. This has kept prices from going up as much as they have in the midtown and particularly downtown areas, where demand has far outstripped supply and seems to be on track to do so for years to come.
At the same time, more recent increases in rent uptown have made it a prime investment opportunity, especially considering the fact that vacancy rates are staying low. Demand for rentals has surged so much that concessions to renters are starting to disappear, as reported by Business Week.
What makes this particularly interesting is that Business Week is reporting sluggish sales figures for co-ops and condos in the city, which directly contradicts the WSJ report and our own experience. While it is undeniable that the market slowed in 2009 and 2010, it seems that the sluggish sales are a thing of the past. The increase in rent and slowdown of new development construction has caused a severe decline in inventory that is already driving prices up in Manhattan Valley, and will continue to do so in the rest of the city.
We maintain that now is an ideal time to buy, whether it is an investment or a personal home. I personally have just purchased my own co-op in the city, because I believe so strongly in the strength of the NYC property market. Already I’m earning dividends; I am going abroad for a three-month project, and I wanted to rent out my apartment. It took less than 24 hours for me to rent my place out at the price I asked–which was exactly in the median for my neighborhood.
I cannot recommend enough buying a piece of Manhattan for your very own. If you are interested in taking a look at what is available in your price range, give Condodomain a call at 1-877-852-6636 or have a look on the website.