There is a land where the normal physics of real estate does not hold sway; a place so special, those who reside there are seemingly inoculated from the everyday concerns of mere mortals.
The housing bubble may burst; the credit may crunch; the mortgage industry may go so far south that Bolivia would be akin to the North Pole. And yet, on this special island, those charmed through luck, perseverance or family fortune can go about their lives all but oblivious to the calamity of the outside world.
That island is, of course, Manhattan. (Come on now folks, you didn’t think I was talking about Cuba, did you?? Only Michael Moore would think that!)
In a bit of understatement worthy of the Pentagon reporting Iraqi war casualties, senior brokers say Manhattan is “holding its own,” says The Real Deal, which tracks such things.
In fact, says the Real Deal article, Manhattan is “proving its exceptional nature once again.”
Duhh. Well, yeah! What else would it do? Manhattan is , as the Sunday New York Times proclaimed in its Sunday magazine section, “where the haves live!” Everyone else presumably lives in Newark or places even further from Oz.
Take just one example: According to the Times, “in the area from 56th to 59th between Madison and Park, average household income increased almost 700 (that’s seven HUNDRED) percent between 1980 and 2000.” Think that might keep real estate prices high?
Even Harlem is “special.” According to Realty Times, “Harlem is still rife with investment opportunities,” and quotes one commercial real estate agent as saying that Harlem’s “profitability has not suffered significantly…”
It is not only possible, but likely, one could spy an 18 year old emerge from a gleaming 5 million dollar one bedroom condo in the former Meat Packing district—now the “in place” to live and play in Manhattan for the under 40 crowd–affording his new abode courtesy of either wealthy parents or foreign money or both. After all, there are not many 18 year olds who can afford 5 million dollar condos on their own dime.
For real estate developers, this is great. No shortage of cash and credit bloated customers in line for Manhattan properties. Of course, this does tend to drive up costs for those who actually live on Earth as opposed to floating above it. No matter,though. What matters is, Manhattan , at the moment, is like no other place in the United States–on this charmed isle, apples fall upward once detached from trees; water flows uphill to the surprise of no one and the expectation of everyone; and the mortgage/housing/credit “crisis” is nothing more than a burp for which a bit of Alka Seltzer will set all right.
As for Brooklyn—–don’t get me started.
Related posts:
- Average Price of Manhattan Apartment Tops $1.2 Mln
- Real Estate Dispatch – 1/3/07
- Record Real Estate Deal–We’re Talking BILLIONS!
- New Contributor to Real Estate Investing for Real
Article Author: Charles FeldmanCharles has written 179 articles for us.
Visit Charles's Website: http://www.thefeldmanblog.com
Charles is currently reporting for KNX Radio in Los Angeles, is the co-author of the book No Time To Think, and can be found commenting about the news on his blog, The Feldman Blog, as well as on The Huffington Post.
Joshua Dorkin
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Now if that were the market I was in, that would be great indeed. However, are market is still steady.
And yet there’s no way for “regular” people (e.g. those who aren’t multi-millionaires” to buy anything bigger than 300 square feet.
I don’t really think that people buying real estates on Manhattan are afraid of rising mortgage rates. The luxury goods are not affected by falling prices, even if the normal goods are cheaper, and that principle is also by real estates. The market here is simple much more liquid then in other areas.
Manhattan has seen better success during this “crisis.” One such property has been Platinum. The sales office has been open for 6 months and the building is over 60% sold out. I guess it also matters what the building has to offer to attract its buyers.
First, its location is 46th and 8th which is in the Times Square district. Perfect location for financial, lawyers, and other major business industry people.
Also its features are second to none. I was just at their sales center the other day and basically anything you can think of is in this building, it’s truly CUTTING EDGE.
They have a recovery zone, fitness zone, Q lounge, spa zone, and outdoor zone all with endless amount of features.
This is one of the main reasons why international investors are buying up Platinum QUICKLY!
If you are in NYC take a look at Platinum. You won’t regret it.
Wow thats pretty crazy, it definitely seems that manhattan is becoming one of the richest places in the country
Hasn’t it always been?
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