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Deal- and dollar-volume rise from Q2, but rent laws and pandemic still slow market
TRD New York
Oct. 23, 2020 06:30 PM
By Akiko Matsuda
New York City’s multifamily investment sales improved in the third quarter compared to second quarter results, as the number of deals and total dollar volume both rose. But the July through September totals were still far below what they were at the same time last year.
In the third quarter, 56 multifamily sales totaled $738 million in the five boroughs, up from 47 sales for a total of $653 million, according to Ariel Property Advisors’ latest report. Average price per unit fell in Q3, however, to $223,000 from $282,000 in the second quarter.
The most recent numbers compare to Q3 2019, when there were 54 sales that totaled $877 million. Average price per unit in that quarter was $399,000, according to the report.
The pandemic continues to have an effect on the market, along with the state’s sweeping rent laws passed last year.
“Buildings that are predominantly rent-stabilized units are trading a lot less these days,” said Shimon Shkury, Ariel Property president, attributing that to the year-old legislation. “Their owners are just keeping them for the most part and trying to figure out how to make strategic decisions.”