The price of a square foot of real estate in Manhattan hit a record in the third quarter — rising to $1,497, according to a new report.
The third-quarter Manhattan real-estate report from Douglas Elliman showed the real estate market was surprisingly strong given global economic weakness and volatility in the stock market. Inventory is tightening, prices are rising and apartments are selling faster and with frequent bidding wars. Despite some claims that real estate — especially at the high end — is reaching bubble proportions, there are few signs of a slowdown, at least for now.
Penthouse at The Charles sold for $38 million, making it the most expensive apartment sold in Manhattan during the third quarter.
“Everything is selling fast, I don’t see how there could be a bubble,” Howard Lorber, chairman of Douglas Elliman, told CNBC. “I think to some degree real estate follows the stock market, but people buy real estate to live in also, not just to invest in.”
According to the report, the average sale price of a Manhattan apartment rose 3 percent year over year to $1,737,565. The number of sales jumped 10 percent from last year and 37 percent over the second quarter.