It’s long been a rule of thumb that apartments in Uptown Manhattan, especially those around Central Park, see better asking prices than homes in Downtown Manhattan neighborhoods like Soho, Tribeca and Chelsea. But that rule seems to have been broken now—according to a new report in The Real Deal, the average asking price for a Downtown apartment in the last quarter of 2012 became $2,777 per square foot, nearly $100 more than the price per square foot for a similar unit in Uptown or Midtown Manhattan.
This is an interesting development, considering that New York City homebuyers have always shown a predilection toward homes on the higher-numbered streets of Manhattan. Having said that, neighborhoods like the Upper West Side and the Upper East Side haven’t had as much new luxury development as in Downtown Manhattan. As a result, in a city that’s notorious for its dearth of inventory, people looking for new homes in the city are swooping toward the Downtown neighborhoods, and they’re finding a lot of good choices there as well.
In fact, many of the new buildings that have made a significant impression in the city’s real estate sector in the recent past have been located in Downtown Manhattan. Chelsea’s Walker Tower, for instance, is one building that’s been enjoying a lot of buzz. Tribeca’s 56 Leonard has made quite a splash in the market with its stunning architecture and the amazing views from the apartments there. Another example is 150 Charles Street in the West Village: it may be a long way away from completion, but half of its apartments are already under contract.
It’s also worth noting that while Downtown buildings may not be able to offer Central Park views or other benefits commonly associated with living in Uptown Manhattan, they seem to be compensating for that with a bunch of great amenities. From gigantic swimming pools to landscaped roof decks, Downtown buildings are going all out with amenities they can offer their potential residents. Given that these perks would be hard to find in uptown Manhattan, it’s easy to see why Downtown Manhattan is experiencing a spike in demand, and therefore, a price increase as well.