If you are searching to buy a townhouse in Manhattan, you may be surprised to find that you’re not the only one. Recent numbers have shown a sharp spike in sales for luxury townhouses in the Manhattan area. Between the months of January and May, 69 townhouses were sold totaling up to $340.6 million dollars, increasing sales from this past year by nearly 50%. Whether looking to yield a high profit of return or just looking for a place to live, the popularity of Manhattan townhouses is clearly skyrocketing with no clear end in sight.
This recent increase is not unprecedented, with superior numbers emerging throughout the early period of 2006. In a market filled with such volatility, it begs the question why such heavy investments are being made in real estate by New Yorkers looking for apartments. Jonathan Miller, CEO of Miller Samuel, claims, “The key reason townhouses are faring well in 2012 is because they are generally a higher-end housing niche in Manhattan, accounting for about 2 percent of total residential sales per year, when including apartments, and the high end of the market continues to show more strength than most other market segments.” Townhouses in the Upper East Side and Greenwich Village in particular are showing encouraging sales, though only for NYC residents willing to part ways with an 8 figure sum.
It appears that Miller is right though, with lavish townhouses garnering an enormous profit and showing much potential going into the latter half of the year. The rebounding market is also credited as one of the reasons for the recent success in townhouses. Pre-war townhouses are just as interesting to NYC residents as foreign investors, who are also getting in on the recent splurge. Predominantly European buyers eager to dodge the euro zone crisis find buying townhouses easier because they generally make for safer investments. New Yorkers and foreigners alike will both be scrambling this summer season to find these popular townhouses before they’re off the market.