_Chelsea, Manhattan: The NYC neighbourhood to keep your eye on in 2022 as confidence continues

What’s been happening in the New York market?

New York’s appeal as a property-safe haven endures, and this is especially evident in Manhattan – often described as the ‘cultural, financial, media and entertainment capital of the world’.

Apartment sales in the borough reached 3,559 in the three months to the end of December 2021 - the highest of any final quarter, according to Miller Samuel/Douglas Elliman, Knight Frank’s residential partner in the US. In the same year, Manhattan registered the strongest increase in luxury prices since 2015, and a 92% jump in sales value.

In terms of rental properties, 2021’s heightened demand in Manhattan saw inventory levels fall significantly, with available homes for rent falling from 41,000 in September 2020 to 10,087 by the end of 2021. The median asking rent per month has now surged past its pre-pandemic high of US$3,378 to US$3,632 in December 2021.

So, what’s next for this desirable area of New York? Despite the headwinds of rising inflation and interest rates, prime prices are forecast to rise by 5% in 2022. Demand for rental properties is expected to outpace supply, with rental growth set to moderate as the pool of rental stock expands.

With all eyes on New York, below, we take a look at the growing popularity of a district that should be on your radar this year…

The rise of Chelsea

Vibrant, leafy Chelsea has long been a centre for New York’s art and culture scene. Situated on the West Side of Manhattan, its buzzing restaurant scene, thriving entertainment options, luxury property and world-famous art galleries make it a perennially sought-after location for property hunters.

Now, its status is set to soar, thanks in part to the modernisation of the piers on its western edge. Google is planning to open a 320,000 sq ft office at Pier 5, just a few streets away from the Hudson Square building that it bought in 2021, in one of the largest-ever office deals (US$2.1 billion).

Besides modern offices, the piers provide a host of activities for residents, from the multi-sport complex and Sky Rink to the green spaces of Chelsea Waterside Park and Hudson River Park. Its connectivity is also a key draw for new residents, offering easy access by train, subway, road and ferry.

A slew of modern properties have emerged in Chelsea, with Maverick on 215 West 28th Street, and FÖRENA on 6th and 14th being just two of the notable developments in the area.

Interested in making your own property purchase in Chelsea? Discover this magnificent home, currently on the market with Knight Frank’s International Team...

2-bedroom condominium, The Graydon, 28 W 23rd Street

Asking price: $2,875,000

This 1,427 sq ft residence at The Graydon features vast windows providing plenty of light and city views, beautiful oak flooring throughout and high-efficiency central heating and cooling. The open-plan kitchen features custom Italian walnut cabinetry, Miele appliances, marble countertops and polished chrome fixtures.

There is an outdoor BBQ, wet bar on the resident rooftop, whilst off the second-floor lounge, an outdoor kitchen, dining area, and fireplace provide the ideal setting for gathering with friends and neighbours alike. Further amenities include a fitness centre, private storage and a bicycle store.

You may have noticed something about the name Knight Frank. The second of those two words in particular. Frank. We’ve been providing frank property advice for 125 years. Whether it’s buying, selling, renting – and everything in between – you can ask us anything.