Photo: Patrick Nouhailler/Flickr
A picture may be worth a thousand words, but some New Yorkers are willing to pay hundreds of thousands of dollars for a view of Central Park.
In some areas, the median price for a home with “front row ticket” to the park is almost double that of a home with a parkless view, according to a new report by the listing site PropertyShark.
To determine the price differences between the first row of blocks and bordering neighborhoods, PropertyShark calculated the median price of units located just across from Central Park, and the median home sale price of each neighborhood bordering the park.
Only condos and co-ops were included in the study. The neighborhoods included were: Central Midtown, Carnegie Hill, Central Park South, East Harlem, Harlem, Lenox Hill, Lincoln Square, Manhattan Valley and Upper West Side.
As far as overall prices go, differences between the first row of blocks bordering the park and neighborhood prices wasn’t as extreme in 2018 as it had been in previous years.
“This is partly due to the fact that prices for condos and coops bordering Central Park have been decreasing, while overall neighborhood prices have been growing,” reads the PropertyShark report.
In 2018, the median price of units in the first row of blocks bordering Central Park is 25 percent higher than the median price of every bordering neighborhood. The median home sale price of all the bordering neighborhoods combined was about $1.2 million, while the median of the “premium” blocks was $1.4 million — a difference of around $277,000.
By comparison, the difference in price between the premium and outlying blocks was 45 percent in 2017 and a whopping 74 percent in 2015.
“The reason behind the 2015 price spike was the large number of expensive units selling in the buildings bordering Central Park: 680 units in total, 134 of which went for more than $5 million with 336 units going for over $2 million. At 781 Fifth Avenue, 36 units changed hands in one year, one of them for $68 million, while at 21 East 61st Street, 70 units traded, with a penthouse unit selling for $52 million,” real estate writer and author of the study Robert Demeter tells Livabl.
Home prices decelerated in the subsequent years and the difference reflected the deflating prices.
Of the neighborhoods bordering Central Park, “front row seats” in Lenox Hill go for almost double the median value for the area. Units in the first row of blocks in Lenox Hill sell for a median of $2.3 million, while the entire neighborhood’s median is $1.1 million — a mind boggling 93 percent difference.
Conversely, Central Park South is the only neighborhood bordering the park where the median home sale price is lower in the buildings in front of the park than the outlying neighborhood’s median.
However, Central Park South is also the smallest neighborhood to border the park, made up of only two rows with two blocks each comprise all of Central Park South.
Price-wise, homebuyers who purchased co-ops typically paid less than homebuyers who bought a condo in 2018. Looking at the neighborhoods as a whole, condos sold for almost $1.5 million and co-ops for $915,000.
Click here to read the entire report.