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The value of homes in in the prime central London property market is typically twice as high as their equivalents in Manhattan, New York, according to new research.
However Manhattan houses tend to be larger than those in London leading to the average cost of family homes being higher in New York City, the data from London-based Beauchamp Estates and New York-based Leslie J Garfield shows.be larger than those in London leading to the average cost of family homes being higher in New York City, the data from London-based Beauchamp Estates and New York-based Leslie J Garfield shows.
It also says that there is a significant British expat population in New York and a vibrant American expat population in London who are potentially seeking property and over the last 12 months there has been a 7% rise in London based high net worth investors seeking to buy prime residential property in New York.
These report analyses parallels and differences between the luxury residential property markets in both locations in eight prime locations, using data from both firms, with statistical analysis by Dataloft.
The report found strong parallels between their built environments, history and lifestyles on offer. Both cities have similar populations at 8.6 million in London, 8.49 million in Manhattan, high population densities at 131 residents per hectare in London and 188 in Manhattan and impressive luxury lifestyle offering. However at 606 square miles, London is double the size of New York City at 305 square miles.
The report found that in terms of £/$ per square feet values the luxury residential property market in London is typically twice as expensive as the equivalent market in Manhattan. So for example, the cost of a large family home in Knightsbridge averages £2,194 per square foot compared to £1,196 per square foot on the Upper East Side (South) in Manhattan.
Similarly, a family home in Belgravia averages £2,031 per square foot compared to £826 per square foot on the Upper West Side while the cost of a property in the City of London averages £1,263 per square foot compared to £735 in Midtown, Manhattan’s financial district.
The cost of a family home in St John’s Wood is £1,535 per square foot compared to just £659 in Gramercy, its equivalent neighbourhood in Manhattan. In South Kensington the cost of a family home is £2,027 per square foot compared to £875 in Central Village in Manhattan.
However, because Manhattan tends to have larger mansions, family houses and bigger lateral apartments than London, the overall average price for a family home in the eight neighbourhoods of New York reviewed is consistently higher than the equivalent addresses in London, with a few notable exceptions.
Therefore the cost of a large family home on Manhattan’s Upper East Side (South) averages £8.1 million compared to £6.94 million in Knightsbridge. Likewise, a large family home in Midtown averages £3.78 million compared to £1.27 million in the City of London. Family homes in New York’s Central Village and Greenwich average £8.1 million and £7.1 million respectively, compared to £4.85 million in South Kensington and £5.3 million in Notting Hill, the comparable neighbourhoods in London.
There are however some notable exceptions in these trends. In London, the average price of a family home in both Belgravia at £5.9 million and Mayfair at £12.3million is higher than the Upper West Side at £4.9million and Upper East Side North at £5.7million, the equivalent addresses in Manhattan.
The report explains that this reversal reflects the significant price rise that have occurred in both Mayfair and Belgravia over the last two years, which have been driven by a series of new super-prime development and house projects undertaken in both addresses.
It points out that over the last 12 months there has been a 7% rise in London based high-net-worth investors seeking to buy prime residential property in New York. There has also been a 7% to 10% rise in interest from London based buyers seeking luxury residential homes in Miami and Los Angeles.
Over the last 12 months, London based purchasers have typically been looking to spend between £3.29 million to £3.95 million on an apartment in Manhattan, preferably in a luxury new built development. New York-based buyers looking for a home in London typically spend £4 million to £4.1 million in an apartment or family home in London.
‘The property markets in London and Manhattan are both characterised by global demand and constrained supply, both have economies based on finance, tourism and commerce, and both rival each other for the role of premier world city and the globe’s most valuable and sought after luxury property destination,’ said Gary Hersham, partner at Beauchamp Estates.
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