New York City is a pricey market, with a median condo sales price of $916,000, but $1.6 million in Manhattan. The borough’s median co-op price was $800,000. So, Manhattan buyers should not have sticker shock when they go house hunting. However, if a co-op or condo next to Central Park entices you, we must warn you that you are going to have to pay more for the pleasure.
Why the higher prices?
Central Park is a green oasis in the midst of an urban environment spanning two and a half miles from 59th Street to 110th Street and half a mile from Fifth Avenue to Eighth Avenue. It has transformed over the last couple of decades, and there is quite a bit to do. There are concerts, Shakespeare in the Park, a zoo, and so much more. You can lounge in the grass, or go for a walk by yourself or with a companion, and even you can bring your dog along. There are a lot of sites to see on your stroll, too.
Breakdown by neighborhood
Those properties that border on the park fetched 25% more than the median price of other units in the neighborhood through the first eight months of this year, according to a PropertyShark survey. In some areas, the properties located on the first block bordering the park received a much higher sales price, however. This holds up historically, with a higher price difference found from 2013 to 2017 when broken out annually.
There are nine neighborhoods surrounding Central Park. This year, Central Midtown, the most expensive one, saw a $4.7 million median price for apartments in buildings fronting the famed park compared to $1 million for other apartments. Apartments bordering the park in the Lenox Hill and Carnegie Hill neighborhoods on the Upper East Side received similar $2.3 million and $2.2 million median prices, $1.1 million and $400,000 more than the rest of the area, respectively.
Buyers in the Lincoln Square and the Upper West Side neighborhoods paid $200,000 more to live close to the park. Lincoln Square condo and co-op buyers expended $1.7 million for the privilege, while Upper West Side purchases saw a $1.4 million price tag.
East Harlem, Harlem, and Manhattan Valley paid $998,000, $705,000, and $915,000 for apartments adjacent to Central Park. This was $293,000, $125,000, and 87,000 more than other residents had to pay.
The Central Park South area is the lone exception, with a median price that is about $500,000 lower than the $1.2 million sales price for those co-ops and condos that border the park. This was attributable to the luxury units on “billionaire’s row,” though.
You may have decided you want to pay the price to live in an apartment building that is right next to Central Park. Then, your thoughts should turn to resale value. From a financial perspective, it is okay to spend more, if you can afford it, providing the value holds up when it is time to sell.
Based on the median price over the last five years, the differential increased from 2013 to 2015, but it narrowed in 2016 through August 2018. There are other factors to consider that can impact resale value, which you can discuss with your buyer’s agent, though.