GCC Buyers Queue Up to Buy New York's Resurgent Super Prime Real Estate
New York - known as “the city that never sleeps” - has certainly been wide awake this year when it comes to its property market.
The market has seen a resurgence in super-prime sales following the pandemic.
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New data from global property expert Knight Frank reveals that 2021 was a record-breaking year, with 446 properties priced above US$10m changing hands. The momentum has continued in 2022 with 146 sales above US$10m completing in the first six months of the year – and 20 of those are in the ultra-prime bracket (US$25m+).
New York’s luxury apartments are in demand. Some 92% of super-prime sales completed in the first half of 2022 equate to apartments - a new record.
The resurgent pull of urban living is also influencing prices, with New York witnessing annual prime price growth return to positive territory in 2021. The latest data from Knight Frank’s Prime Global Cities Index confirms prime prices in Manhattan increased 7.3% in the year to June 2022, signalling the extent to which the post pandemic urban revival is underway.
Knight Frank expects prime prices to increase 6% over the course of 2022 with a further 4% rise expected in 2023 despite the economic headwinds.
During this time, Knight Frank saw a decline of 12% in the number of properties available for sale in Manhattan from Q1 2021 to Q2 2022. This has tightened supply, particularly at the prime end and has resulted in a significant fall in the number of days a property remains on the market, falling from 147 days in June 2021 to 57 days in June 2022.
On the rental side, prime rents have bounced back significantly post pandemic, confirming the extent to which the top tier cities are seeing demand return. New York led Knight Frank’s rankings with rents increasing 39% in the year to Q2 2022, although this largely represents a return to pre-Covid levels - the result of workers returning to the City and students to study. In turn, Manhattan rents have surpassed US$5,000pcm this summer, reaching a new high.
Since the lifting of travel restrictions, 2022 has seen buyers from the Middle East look to New York as a stable and transparent market to invest in, as they look to diversify their investment portfolio and increase their exposure to the strengthening dollar. This has been particularly apparent for Mandarin Oriental Residences, Fifth Avenue.
Georgina Atkinson, head of U.S Residential Developments at Knight Frank said; “Now, more than ever, our clients want to hold dollar denominated assets in arguably one of the world’s safest and most transparent real estate markets. With the growth of ultra–high–net–worth individuals set to increase by 25% between 2021 and 2026, demand for truly exceptional product such as Mandarin Oriental Residences, Fifth Avenue is only set to continue.
The building has resonated exceptionally well with our clients globally. The brand alone has a dedicated and loyal following of buyers from around the world, who appreciate Mandarin Oriental’s outstanding level of service and award winning, five-star hospitality.
As Mandarin Oriental’s very first exclusively residential offering on the East Coast, located in the heart of Manhattan with views toward Central Park, naturally we have received many enquiries. The unprecedented concept of turn-key, fully furnished residences coupled with the five-star services and amenities by Mandarin Oriental Hotel Group has resonated remarkably well with our buyers based in the GCC region as they want this ‘true’ and elevated level of VIP service and luxurious standard of living which will be available to residents on their doorstep, 24 hours a day. This, coupled with private dining by Michelin starred Chef Daniel Boulud is of course hugely appealing. Buyers are offered the opportunity for the ultimate hotel living experience, with complete privacy but without the need to share with hotel guests.”
"Mandarin Oriental Residences, Fifth Avenue is a private residential club with legendary services by Mandarin Oriental located on one of the world’s most prestigious thoroughfares – Fifth Avenue,” said Michael Shvo, Founder and Chairman of SHVO. “This unique SHVO property is truly a private sanctuary, complete with dedicated dining experiences curated by Daniel Boulud and Mandarin Oriental’s exceptional staff dedicated to each individual owners’ needs."
For more information, please contact Georgina Atkinson.