Bidding wars are now being seen in both Manhattan and Miami Real Estate markets
Manhattan and Miami property prices have seen significant price increases in the first quarter of 2012 in comparison to the prior year, with record prices in both markets.
At current sales rates, Manhattan has 9 months of inventory and Miami has only 4 months of inventory remaining. In Miami, to meet the demand of buyers in the face of declining inventory levels, developers are announcing new projects every few weeks.
Manhattan price increases on a per square foot basis
Manhattan condo prices increased 9%
Luxury prices increased 8%
Miami price increases on a per square foot basis
South Beach prices increased 20%
Miami Beach prices increased 27%
Downtown prices increased 19%
Luxury prices increased 13%
Record prices have hit Miami, marked by a sale at St. Regis Bal Harbour for $20 million and another at Setai for $21.5 million. While not across the board, there have been a number of sales at record prices in both markets.
In one instance, a penthouse in Manhattan, at 15 Central Park West was sold for a record 88 million dollars. At One 57, the new uber-luxury 90-story pre-construction development towering over Central Park, off-plan apartments have reportedly been selling at 4 to 5 times the average price per square foot of a condo in Manhattan.
Gone, are the days of 10% down payment for a pre-construction property. Developers in Miami are now requiring 50-60 percent in progress payments over two years, with the remaining at closing, a practice borrowed from the Brazilians, an increasing participant in this market.
Manhattan new development has been on a much slower track, with a dearth of new development coming online in the next few years. Accordingly, the low inventory environment in Manhattan is likely to be the norm for some time.
Ricardo Mello from Manhattan Miami Real Estate explains, “Declining inventory levels has caused multiple bids on certain properties. While multiple bids are not widespread, since many prime neighborhoods now have a shortage of inventory, bidding wars, a boom-era phenomenon, are on the rise.”
As for mortgage financing trends, down payment requirements have been lowered for foreign buyers by some big banks to 30% in Manhattan and 40% in Miami (although some smaller banks have been offering mortgages with lower down payments in Miami), down from 40% and 50%, respectively. For primary homeowners, however, lending standards remain stringent.”
Notes to editors
Ricardo Mello, Co-Founder of Manhattan Miami Real Estate is available for interviews.
Price increases percentages were taken from Jonathan Miller’s market reports- The Miami and Manhattan Market Reports for Q1 2012.
About Manhattan Miami
Manhattan Miami Real Estate, an international full-service luxury real estate group within the Charles Rutenberg brokerage firm, assists buyers and sellers of prime Manhattan and Miami properties. At manhattanmiami.com, customers can search for Manhattan Luxury Real Estate & Miami Luxury Condos in one place and browse all New York City and Miami properties. Source: PR Newswire (http://s.tt/1bCUI)