Statistics from appraiser Miller Samuel Inc., indicated that new apartment leases signed for units with monthly rents above $15,000, the top 1 percent of the market, more than doubled to 77 in the third quarter from a year earlier, according to an article today at Bloomberg.net by Oshrat Carmiel.
The article said that the median monthly rent for all luxury units in Manhattan, defined as the top 10 percent of the market by price, declined 18 percent to $6,950 in the third quarter from a year earlier, according to New York-based Miller Samuel, while the median luxury sale price rose 13 percent to $4.39 million, after bottoming out at $3.78 million in the final three months of 2009.
"he divergent moves left the gap between the cost of buying a luxury apartment and the annual cost of renting at its widest since the first quarter of 2009, when the median purchase price peaked at $6.6 million. Buying cost 53 times renting in the third quarter, compared with 38 times a year earlier and 58 times in March 2009," he article said.
The own-versus-rent comparison doesn't take into account the benefit buyers get by deducting mortgage interest from taxes.
The supply of luxury rentals is being fed by owners who don't want to sell at today's prices, said Jonathan Miller, president of Miller Samuel. "Rather than wait, they rent it out," he said in a telephone interview. Mr. Miller said that there are about 6,000 unsold condos of all prices in Manhattan.
New apartment rentals in Manhattan more than tripled in the third quarter, the article c continued, as landlords offered fewer concessions and tenants sought better deals by moving out. New leases signed across all price categories surged to 8,593 from 2,549 a year earlier, according to Miller Samuel and property broker Prudential Douglas Elliman Real Estate. The surge in leasing was concentrated in the middle of the market, which helped drive down the level of rents comprising the top 10 percent.
In the Manhattan market overall, the article said, the cost of buying an apartment was 25 times more than the annual expense of renting in the third quarter, up from 24 times a year earlier.
The article said that the median monthly rent for all luxury units in Manhattan, defined as the top 10 percent of the market by price, declined 18 percent to $6,950 in the third quarter from a year earlier, according to New York-based Miller Samuel, while the median luxury sale price rose 13 percent to $4.39 million, after bottoming out at $3.78 million in the final three months of 2009.
"he divergent moves left the gap between the cost of buying a luxury apartment and the annual cost of renting at its widest since the first quarter of 2009, when the median purchase price peaked at $6.6 million. Buying cost 53 times renting in the third quarter, compared with 38 times a year earlier and 58 times in March 2009," he article said.
The own-versus-rent comparison doesn't take into account the benefit buyers get by deducting mortgage interest from taxes.
The supply of luxury rentals is being fed by owners who don't want to sell at today's prices, said Jonathan Miller, president of Miller Samuel. "Rather than wait, they rent it out," he said in a telephone interview. Mr. Miller said that there are about 6,000 unsold condos of all prices in Manhattan.
New apartment rentals in Manhattan more than tripled in the third quarter, the article c continued, as landlords offered fewer concessions and tenants sought better deals by moving out. New leases signed across all price categories surged to 8,593 from 2,549 a year earlier, according to Miller Samuel and property broker Prudential Douglas Elliman Real Estate. The surge in leasing was concentrated in the middle of the market, which helped drive down the level of rents comprising the top 10 percent.
In the Manhattan market overall, the article said, the cost of buying an apartment was 25 times more than the annual expense of renting in the third quarter, up from 24 times a year earlier.
Architecture Critic
Carter Horsley
Since 1997, Carter B. Horsley has been the editorial director of CityRealty. He began his journalistic career at The New York Times in 1961 where he spent 26 years as a reporter specializing in real estate & architectural news. In 1987, he became the architecture critic and real estate editor of The New York Post.
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