My first “Deal of the Season” is located on the Upper East Side. The UES includes some of NYC’s finest restaurants, schools and entertainment. It currently has some of the lowest prices (price s/f) in the City.
The UES property prices have been depressed during the last five years because of excessive amount of inventory and little buyer demand. It’s known for dated co-ops with high maintenances and strict boards. As sales slumped, inventory spiked and property valuations paid a heavy price. Today, there are 1,231 homes for sale on the UES — this is 43% more than on the Upper West Side. Over the past 12 months properties on the market average 189 days and sell for 9.8% less than their asking price. All these factors make for a very soft market for sellers — one great market for buyers.
In my opinion, this market is about to turn the corner. The opening of the Second Avenue Subway has shot additional life into this forgotten section of New York. Not only are homeowners coming back, but retailers and small and medium-sized businesses are looking for office space. Over the last two months, we have more prospective buyers asking about the Upper East Side than anywhere else in NYC. Add this to the trend/fact that future inventory will be lower on the Upper East Side than anywhere else in the City and the UES market feels primed for a rebound.
The Corcoran Group is projecting that over 4,700 new property launches (new devs) will be introduced to the Manhattan market in 2017. There will be 776 units in Midtown, 843 units in the Financial District and 625 units on the Upper West Side (another 2,349 units around the City). But there will only be 196 coming to market on the UES. Inventory is high now, but will drop after the consumption of the current inventory. Once this buying cycle is completed the new development inventory for the UES is 4% of the overall, resulting in a significantly lower (negligible) replacement ratio. This is the perfect recipe for a rise in property values on the UES.
So all of these positive trends provides me with some certainty that prices will rise on the UES over the next 18 to 24 months. But what’s currently there now? You have some great deals. Prices on the UES are lower than in Park Slope and Williamsburg, Brooklyn, on average. Taking a snapshot of NYC’s dollar per square foot, the UES is 21% less than the average of everything else below 100th Street. Those are great deals. Below, are a couple of my favorites that I believe are great deals. Let me know if you’d like to see them for yourselves or look at anything else. There is so much to see, there are 176 one bedrooms under one million, 37 of them are condos!
1. Look at this two bedroom on the UES:
This two bedroom condo has low monthlies, great views and can be converted into a three bedroom if needed. The apartment needs work, but the building has a full-time doorman and a POOL!!!. A great deal.
2. This is a great prewar one bedroom on the UES:
Great block, doorman building, wood burning fireplace and so much more. This co-op allows co-purchasing and subletting and is currently priced at a very attractive level of $775 K.