Price Per Square Foot Rises
A: My daily browsing of Matrix led me to this interesting chart regarding the Price-Per-Square-Foot (PPSF) of closed Co-op & Condo deals for the entire island of Manhattan. For those newbies, PPSF is a number derived simply by dividing the asking price by the total size of a property. It's a valuation metric used to asses a property's actual resale value.
According to the post:
The average price per square foot of a Manhattan apartment has risen continuously over the past decade, up a total of 234.7%. The average square footage of all units sold peaked with the dot-com boom, at 1,362 square feet, later trending down 6.8% to 1,269 square feet in 2005.
NOTE: As with all housing stats this chart is dating back to last year (lagging) when the market was very different. I'm certain the next chart, or perhaps the following one, will more accurately show the recent housing slowdown in NYC with a small drop in price-per-square-foot per transaction closed.
~ Crains New York Business Economic Spotlight Chart - March 2006