BY SOUTHERLYN MARINO,
THE CORCORAN GROUP
The marathon New York real estate market appears to be rocketing through its fifth year of rapid growth, according to the Mid Year 2000 Corcoran Report. "The average price of a New York apartment has risen 18% over the last six months, a rate which nearly doubles the 19% price increase for all of 1999, itself an 11 year record. And a shortage of rental units has sent starting rents up by as much as 10% in six months across almost every category," reports Barbara Corcoran, Chairman and Founder of The Corcoran Group.
According to Corcoran's report the wave of celebrity, Wall Street, foreign and other wealthy buyers in downtown neighborhoods has catapulted two downtown addresses onto the list of the city's most expensive. Whereas, Upper East Side grand dames like Beekman and Sutton Place have fallen out of the top five which are:
Single millionaires continue to dominate the Manhattan buyers market, as the unmarried account for over 52% of transactions. The average buyer is also 38 years old, earns $402,000 and is worth $2.491 million.
Thought it was expensive to buy? Try renting! The ultra luxury category has seen the greatest price increases, with a small one-bedroom now starting at $3195. Rents for the largest apartments have reached stratospheric prices with lofts in hot neighborhoods that are 1500 square feet and larger starting at $6500.
Home prices in Manhattan are defined by the lack of inventory that affects the entire market. Townhouses are the ultimate symbol of scarcity as few of these buildings exist which have not been subdivided into apartments. East Side crown jewel mansions commanded prices over $10 million. But the West Side posted the most impressive gains, with average prices rising 34% to an average $2.9 million. Downtown, the townhouse price ceiling was raised by $1 million from last year to more than $5 million today.