Potential Trouble for Manhattan Condominiums

Home prices in Manhattan have lifted off from the rest of the New York metropolitan area, propelled higher and higher by demand from global investors and a series of luxury developments.

That could spell trouble. “A large number of new units will become available in coming quarters. Buyers will likely require additional discounts,” according to the “UBS Global Real Estate Bubble Index 2017,” a new report from UBS Wealth Management.

Transaction activity has declined considerably since 2015 in Manhattan, and the average time to sell a property has doubled since 2013, according to UBS. The price of a coop apartment or condominium in Manhattan is equal to 11 times the annual income of an average New Yorker.

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