This reflects a seasonal uptick that Manhattan historically experiences between the first and second quarters. However, this increase was somewhat muted compared to previous years, highlighting the nuanced nature of the current market dynamics.
The total $10 million+ trade volume in Q2 2024 reached $919.7 million, down 15% from Q2 2023’s $1.09 billion. This slight decline in high-value transactions points to a more selective market, where buyers are increasingly discerning and focused on securing properties that meet their exacting standards. Despite this, the overall activity levels and robust interest in prime Manhattan real estate underscore the city’s enduring appeal.
Midtown East emerged as a standout performer this quarter, recording a 49% increase in trade volume, from $49.3 million to $73.5 million, despite maintaining the same quantity of trades. This significant uptick in average trade volume indicates a shift towards higher-value transactions within this historically lower-performing neighborhood. Midtown West also recorded a 10% increase in trade volume, from $177 million to $195 million, accompanied by a 9% increase in the number of trades. These gains, although modest, highlight Midtown's growing diversification and attractiveness to buyers. Midtown as a whole was the only area to demonstrate an increase in trade volume.
The $30 million to $40 million price segment saw a 28% increase in trade volume, from $102.7 million to $131.5 million.
Cody Vichinsky commented, “Despite a slightly lower increase in trade quantity compared to previous years, the level of interest and the volume of inquiries we are seeing indicate a market that is fundamentally strong. Buyers are more discerning, but they are also more committed to securing the best properties that Manhattan has to offer.”
For the last few years, the Manhattan market has complemented the Hamptons in a cyclical manner; when the Hamptons experienced a surge in activity, Manhattan tended to slow down, and vice versa.
In some sense, that is still true, as there was a 15% decline in total trade volume compared to Q2 2023. On the other hand, we’re seeing an alignment of their trade cycles; there was a 17% increase in Q2 2024 trades compared to Q1, and we believe the third quarter is already positioned to perform strongly as the quarter is beginning with 90 $10 million+ properties in contract. The current pipeline suggests a market that is both resilient and adaptive, capable of weathering broader economic fluctuations while maintaining its appeal to global investors.