This is not a joke. A report compiled by international brokerage and consulting firm Knight Frank, which is based in London, indicates that New York City occupies only the 8th place in the ranking of the world’s priciest cities.
According to Knight Frank, in New York, $1 million buys approximately 474 square feet of luxury real estate. The tiny principality of Monaco, where $1 million buys only 172 square feet, was ranked # 1, followed by Hong Kong (204 square feet) and London (247 square feet). Then come Geneva, Paris, Singapore, Moscow…all more expensive than our beloved Big Apple.
The most expensive listing now on the market in Manhattan is a triplex Penthouse at the Pierre Hotel asking $125 million. This is nothing compared to the purchase price of an apartment at One Hyde Park condominium in London in 2011 for the equivalent of $219 million or the asking price of approximately $390 million for a penthouse at the Tour Odeon condo in Monaco.
Many experts agree that New York real estate today is still undervalued on the global stage.
The thing is that, even if there is a record low inventory available in the City , there are many of these luxury markets where the inventory is even more limited. Even the cost of construction is relatively more affordable here in NYC.
Also if we look at the broad U.S. real estate market, we discover that the listing at the Pierre Hotel is not even the highest priced. Copper Beach Farm, a waterfront estate in Greenwich, Conn., hit the market in May for $190 million. The Owlwood estate in Los Angeles, which sits between Sunset Boulevard and the Los Angeles Country Club in Holmby Hills, is on the market for $150 million. And in Dallas, the Crespi Hicks estate was listed in January for $135 million.
In London overall, the average price per square foot for a high-end residential condo is about £4,000, or $6,122, per square foot. By contrast, the average price for the top 10 percent of all Manhattan apartments sold in the first quarter was $1,925 per square foot, according to a market report from New York City brokerage Douglas Elliman.
And the average price per square foot of closed sales at Manhattan top-condo 15 Central Park West was $5,009 as of mid-June, according to real estate data provider CityRealty.
So this is the scoop… if you are looking to buy an apartment in the price range $80 million to $100 million, NYC is a bargain. For real!