July 13, 2020
Manhattan saw an unprecedented halt in investment sales activity in the second quarter due to COVID-19, reaching its lowest level since Q3 2009, according to Avison Young’s 2Q20 Property Sales Report for Manhattan.
Q2 saw 30 transactions and $753 million in total dollar volume, down 56% and 83%, respectively, from the trailing four-quarter average.
“In normal markets there are enough data points to project market pricing trends,” said James Nelson, Avison Young’s head of Tri-State Investment Sales. “However, with few data points, combined with the long nature of a real estate transaction, there were not enough transactions to say definitively what pricing correction may result from this period.”
The first half of 2020 recorded just 96 transactions and $5.17 billion in total dollar volume. Annualizing this pace, Manhattan is on track for 190 transactions and $10.3 billion in total dollar volume, representing 66% and 63% of the 10-year average, respectively.
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