Manhattan’s high-end real estate market continues to show sustained activity despite a more selective environment. At the same time, changes in the taxation of certain non-primary residences are introducing a new consideration for buyers and investors in New York.

98 Luxury Contracts Signed in 30 Days in Manhattan

Over a recent 30-day period, 98 contracts were signed for Manhattan properties asking more than $4 million, representing a 5.4% increase year-over-year, even as the number of new listings declined.

This activity shows that buyers remain present in the luxury segment. However, they are increasingly selective and particularly focused on property quality, location and, above all, appropriate pricing.

In this environment, well-positioned and correctly priced properties can continue to attract interest quickly, while listings entering the market at overly ambitious prices may experience longer marketing periods.

Pied-à-Terre: A New Tax Consideration

New York has introduced a new surcharge affecting certain high-value non-primary residences.

For condominium and co-op apartments, its application depends in particular on the value determined by the New York City Department of Finance, which does not necessarily correspond to the property’s purchase price or market value.

This distinction is particularly important for international investors and pied-à-terre buyers, who represent a significant part of Manhattan’s high-end market. Each situation should therefore be reviewed individually based on the property, its tax value and the buyer’s intended use.

What Buyers and Investors Should Take Away

This tax change does not necessarily diminish the appeal of purchasing real estate in New York. However, it adds another factor to consider when calculating the total cost of ownership.

For investors and pied-à-terre buyers, the analysis should therefore include the acquisition price, common charges, property taxes and, when applicable, the new surcharge.