Turns out, it’s now pricier to buy property in the Big Apple than in the Big Smoke.
According to a new wealth report from Knight Frank, London is no longer ahead of New York when it comes to luxury housing. The American concrete jungle tops the list for the number of sales in super-prime and ultra-prime markets. For context, that includes properties worth over $10 million or $25 million, respectively. In 2022, there were 244 super-prime and 43 ultra-prime residential real estate transactions that occurred in New York. Los Angeles sits in the second spot while London lands in third. Interestingly enough, the Square Mile’s ultra-prime sales increased by 25 percent, matching New York at 43.
“Despite rising economic headwinds and growing uncertainty, the world’s wealthy have been committing to luxury residential property, with London and New York the standout cities in demand for ultra-prime sales,” Liam Bailey, global head of research at Knight Frank, said in the report.
In the past year, prices and sales of prime residential real estate in Manhattan have surpassed the UK’s capital city. In 2022, $1 million could get you 355 square feet of prime property in New York City. Across the pond, that would buy you 365 square feet. New York is currently ranked as the third most expensive city behind Monaco and Hong Kong. While London, which was dubbed the costlier locale back in 2021, is tied for fourth place with Singapore when it comes to value.
“The strong dollar had an influence and boosted New York’s position, but prime prices in New York were up 2.7 percent last year and 1.5 percent in London, so we’re seeing slightly slower growth in London,” added Kate Everett-Allen, global head of residential research at Knight Frank. “Wealth preservation, safe-haven capital flight and supply constraints played their part in driving prime price growth, but it was the post-pandemic surge that continued to push prices higher.”