Photo via Wikipedia Commons user SpoilMeWith
This year Manhattan hit a new milestone, with apartments reaching an average sales price of $1 million for the very first time. The city's inventory is also on the rise, with the most number of newly constructed condos hitting the Manhattan market since 2007.
London, New York City’s only rival, has consistently topped the world's housing market year after year. There seemed to be no end in sight with the record breaking numbers of investment and growth. Once thought limitless, London's luxury real estate market was a safe option for long-term investments, outperforming New York and every other major city in the world since 2010. But the pendulum is swinging again.
In the case of London, the bloom is falling off the flower. Taxes have increased due to the UK's new tax — those wanting to purchase the best and most expensive homes in London are getting hit hard with property tax. The change, however, has done very little to solve London's housing shortage problem. The city's central district is facing a decline in demand, so much so that experts are forecasting a yield of zero percent growth in the area by next year.
New York, however, doesn't seem to have London's problem of its housing market looking like a cliché. Lucian Cook, director of UK's residential research at Savills, believes that there is an inconvenient truth to fixing London's problem with meeting demand. Increasing the supply of rentals to make up for the decline of home ownership in London is a solution that's currently at the forefront.
There are many situational, yet advantageous buying and selling opportunities going on the New York's housing market. And broken down in simple terms, buying in New York instead of London is a tangible process.
The average price per square foot for luxury homes in New York is half the value of homes in London, and by choosing to invest in Manhattan instead, foreign investors are discovering more opportunities. In 2014, New York saw the biggest gain in real estate market prices among every world city, beating out London, Hong Kong, and San Francisco with an 18.8% jump in sales. With average sales prices reaching a record high this year, New York offers a more comfortable and positive outlook for 2016. Since the Federal Reserve announced an increase in short-term interest rates earlier this week, real estate experts project an even brighter future for Manhattan’s housing market. Property values will be re-evaluated by buyers, and the change is enough to level out the playing field.
With Brooklyn taking the nation's lead in new housing development by 2016, there is no question that buyers have more to choose from when it comes to purchasing a luxury home in New York. Pomander Walk, known for its charming similarities to Chiswick West London, is an example of the many possibilities available to international buyers. For half the price of London, one can still choose to live a Briton-esque lifestyle right here in New York City.