The average cost of a Manhattan apartment has risen above $2 million for the first time.
According to CityRealty’s annual Year-End Manhattan Market Report, the average price for an apartment – including co-ops and condos – rose to $2.2 million from $1.9 million in 2015.
For the third year in a row, Manhattan real estate prices reached record highs in nearly every property category, including average apartment price, average condo price, average condo price per square foot, median apartment price, and median condo price.
However, CityRealty predicts that average prices for condos will drop next year for the first time in more than five years, while average price overall will remain unchanged.
The CityRealty report showed that new development condo sales shot up in 2016 in both number of closings and average price. The average price of new developments was a record-setting $4.9 million.
The average price of a condo in 2016, $3.1 million, was also at an all-time high, surpassing the record set in 2015, $2.6 million. The average price per square foot also rose to a record $1,886, a nine percent increase from 2015.
Average prices dipped slightly in the Manhattan co-op market to $1.3 million, down from $1.4 million in 2015. However, the median price, $825,000, rose from last year, when it was $785,000.
CityRealty projects that total sales of apartments over $10 million will reach a record $5.2 billion through the end of 2016, up significantly from the $3.5 billion recorded in the same category last year.
The number of sales at or over $10 million will hit a projected 300 through the end of 2016, also a record and up from the 189 recorded last year.