Although multifamily investment sales decreased during the first quarter in New York, high demand among international buyers led to competition and price increases.
The supply of properties remains limited, and many apartment buildings are receiving multiple qualifying bids, GlobeSt.com reports. Manhattan and Brooklyn are the top-performing boroughs in terms of sales, but many owners are receiving higher-than-asking prices. Rental property management firms are being kept busy by Americans seeking jobs in the metro area.
Many owners are not interested in selling, analysts told the news source, saying that multifamily is outperforming their investment alternatives anyway. Supply and demand are sharply imbalanced, which experts told the news source is having noticeable effects on capitalization rates and sector fundamentals.
In addition to international investors, high-net-worth individuals and local families who have traditionally played a role are returning to the market after withdrawing in previous years and many first-time buyers are looking to the metro area for investment. The impact of current trends may be felt more in the second quarter than currently, the news source reports, as a number of closings are completed.