The pandemic wreaked havoc on New York City’s real estate market. However, the market is bouncing back with a vengeance as we enter 2022. Battery Park City is a prime example of this resurgence.
At the end of 2021, there were 97 recorded sales in Battery Park City. This represented an increase of almost 100% from 2020. Even more encouraging is that the number demonstrated a return to 2019 levels, which also saw 97 sales at year-end. If ever you wanted encouraging news about apartments, condos, and houses for sale or New York apartments for rent, this is it.
Encouraging Sales Figures
Despite a slight decrease in the number of units sold in Battery Park City, the overall picture is a healthy one. The number of units sold in the last quarter of 2021 decreased by 12%. That said, the year-on-year increase in units sold was a robust 77%.
43% of those properties sold were one-bedroom units, which remain the most popular option when it comes to NYC apartments for sale. The fourth quarter of 2021 also saw activity decrease by 9%. Despite that, the year-on-year increase in activity was 67%. Buyers paid an average of $1,187 per square foot during that quarter, which represented a 6.2% reduction quarter-on-quarter and a 2% increase year-on-year.
The last three months of 2021 also was the strongest quarter for studio apartments. The average price of those New York apartments for sale was $605,833, which was more than 12% higher than Q3 2021’s average price.
Rental Market Returning to Normality
The numbers for the fourth quarter of 2021 also show that Battery Park City’s rental market is returning to normal. The 50% reduction in the number of units rented quarter-on-quarter made for a market that was much more recognizable than what we saw in 2020.
The 127 recorded rentals in Q4 2021 were a 52% decrease quarter-on-quarter. In 2019, Q4 saw 176 units rented, which represented a 59% decrease from Q3 that year. If we compare figures for 2019 and 2020, we find that the number of units rented fell from 1,158 to 937. However, in 2021, the number of units rented increased to 1,009.
The average price of those 127 New York apartments for rent was a strong $5,159, which was a mere 0.5% reduction quarter-on-quarter. As with property sales, one-bedroom units were the strongest performers. The average rent of those units was $4,320, which made for a 12% increase quarter-on-quarter and a year-on-year increase of almost 25%.
Although three-bedroom apartments for rent in New York City’s Battery Park City showed a great year-on-year recovery with a 27% increase in average rent, they did struggle somewhat during the last quarter of 2021. During Q4, average rent fell by almost 15% quarter-on-quarter. The number of units rented quarter-on-quarter tumbled by 68%.
COVID Effect On the Property Market
Rentals and sales in Battery Park City and the rest of New York City were hit hard by COVID. The height of the pandemic saw massive job losses, a lack of international students, and an increase in multigenerational households where young adults moved back to their parents’ homes. Many people also chose to leave the city.
For many people, the dire work situation meant they simply couldn’t afford apartments for rent in New York City.
Buying property also was out of the question. Thankfully, the figures for the last half of 2021 (especially Q4) indicate that the pandemic’s effect on the property market is over – and we believe it’s likely to stay that way.
There’s no denying that the Delta and Omicron coronavirus variants have made many consumers more cautious, but they haven’t had the same fall-out or sparked the same exodus that we saw in 2020. Those still in the city aren’t going anywhere and those who just recently returned realize this is our collective new reality for the time being.
Your Battery Park City Experts
Are you currently looking? We have an exclusive New York City apartment for sale in Battery Park City. PH1A at the acclaimed 225 Rector Place is a truly unique luxurious penthouse with breath-taking views of the Hudson River and the World Trade Center. Contact us for more information.
Platinum Properties is 225 Rector Place’s exclusive real estate partner in the building. Platinum agents Carole Becker and Katya Hrabianiuk have an office in-house to offer residents, owners and prospective tenants and buyers real estate guidance in the building and Battery Park City neighborhood. If you’re looking to rent, buy or sell at 225 Rector Place or in Battery Park City, send us a message.