Jun
26

Putting a Price Tag on Views of Central Park

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A new report  from PropertyShark.com finds that the price of a typical apartment sold in buildings that border New York’s Central Park was more than double than that for for apartments in surrounding neighborhoods last year.

The price difference is even greater for co-ops on the park with those prices three times higher along the parks than in co-ops in surrounding neighborhoods, the largest reported since 2008.

Living close to the park is something that nearly every homebuyer wishes for, but the waterfront and nearby neighborhoods may eventually reduce the premium paid for shelter on park-lined blocks.

The report found that median apartment sales price was 1.85 million last year compared to $850k in the surrounding ZIP codes which includes most of the Upper East and West sides, which works out to a 118% premium.

Similarly, the median co-op price was $2.4 million compared with $795k for the surrounding ZIP codes, making a 202% premium for Central Park Properties.  The premium was 233% in 2008 when the sale of more expensive properties intensified.

New York real estate is very local, with prices and status varying from building to building.  One great advantage to owning on  Central Park:  no new buildings will be built in front of your building.  But one doesn’t need to live on Central Park to take advantage of the view; some of the priciest sales often have a view of Central Park as well.

From Wall Street Journal article by Josh Barbanel

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