With 59 trades totaling approximately $1.03 billion, the market demonstrated a significant rebound, reflecting a 26% increase in trade quantity from 47 trades and a 10% rise in dollar volume from $933 million in Q1 2024. This momentum underscores robust demand, particularly within certain market segments and property types, indicating a positive outlook for the year ahead. Indeed, the number of transactions witnessed this quarter is the strongest first-quarter performance since early 2022, signifying a notable return of buyer confidence in Manhattan's high-end real estate market.
“Manhattan’s numbers this quarter underscore how quickly well informed buyers will act when premier inventory appears,” says Michael Cantwell, Founding Partner & CMO at Bespoke Real Estate. “Depth of demand across price points and neighborhoods signals a market that has recalibrated and is moving with purpose.”
Buyers showed clear and diverse preferences, significantly leaning toward resale properties. This category dominated the market with 44 transactions amounting to approximately $818.5 million, marking a 22% rise in quantity from 36 trades and an 18% increase in volume from $692.7 million compared to the previous year. This preference reflects the enduring appeal of immediately habitable homes, as the average resale price only marginally dipped by 3% to approximately $18.6 million. Conversely, new developments faced some challenges, with dollar volume decreasing by 13% to approximately $209 million despite an increase in transactions from 11 to 15, suggesting heightened interest in lower-priced new developments. The average trade price for new developments notably decreased by 36%, settling at around $13.94 million.
The strong preference for condo and co-op living was particularly evident, as this segment surged by 35% in transaction quantity from 37 to 50 trades and 31% in dollar volume from approximately $681.8 million to $890.4 million. This substantial increase, representing over $200 million in additional trade volume compared to Q1 2024, highlights a decisive shift towards properties offering extensive amenities, security, and lower maintenance lifestyles. Conversely, townhouse activity diminished significantly, declining by 10% in trade quantity from 10 to 9 trades and 45% in dollar volume from approximately $251.4 million to $137.2 million, potentially driven by limited inventory of high-quality townhomes and increased availability of luxury condos and co-ops.
Analyzing price segments further reinforces current market preferences. The $10–$20 million bracket continued to dominate, recording increases of 44% in trade quantity from 32 to 46 trades and 41% in dollar volume from $442.6 million to approximately $625.5 million, accounting for 78% of all Q1 transactions. This overwhelming preference underlines continued market stability and robust buyer interest within this approachable yet luxurious segment, maintaining an average trade price around $13 million. The $20–$30 million segment saw declines of 30% in trade quantity from 10 to 7 trades and 32% in volume from approximately $236.9 million to $160.8 million.
Conversely, the $30–$40 million segment increased by 50% in quantity from 2 to 3 trades and 48% in volume from approximately $68.6 million to $101.4 million. The top-end market ($40 million and above) maintained consistent transaction quantity but experienced a 24% decrease in dollar volume from $185.1 million to approximately $139.9 million, reflecting cautious activity at the extreme high-end segment.
Regionally, market activity showed notable variances. The Upper East Side emerged as a standout performer, experiencing a striking 113% increase in transaction quantity from 8 to 17 trades and a 91% surge in dollar volume from approximately $186.1 million to $355.9 million. With an impressive average trade price of nearly $21 million, this area alone accounted for 35% of the quarter's total dollar volume, highlighting strong renewed demand in this traditionally prestigious locale. Midtown West also performed robustly, increasing trade quantity by 45% from 11 to 16 trades, with dollar volume rising modestly by 6% from approximately $226.1 million to $239.5 million, underscoring consistent interest in this centrally located district. Downtown experienced a 20% decrease in trade quantity from 15 to 12 trades and a 16% reduction in dollar volume from approximately $272.5 million to $229.1 million. Midtown East remained flat in trade quantity but experienced a significant 53% drop in dollar volume from approximately $97.3 million to $45.9 million, suggesting a shifting focus to other neighborhoods.
Looking ahead to Q2 2025, we anticipate continued robust market activity, driven particularly by sustained interest in the Upper East Side, Midtown West, and Downtown areas. Historical trends suggest the second quarter typically experiences increased market momentum, and given the strong start in Q1, the New York City ultra-luxury residential market is well-positioned for continued stability and growth.
