Holding Strong... For Now

Two areas seem to fare better in the current housing downturn — places that missed the boom and select premium districts in global gateways where demand remains strong. Off the radar screen neighborhoods had avoided speculation and bidding frenzies. The fact that values haven’t dropped as much may not necessarily be good news — they’re just not places to which people gravitate whether in good or bad times.

Not surprisingly it’s premium addresses in the handful of 24-hour global metros which not only hold value, but also even experience pricing upswings. Certain established Manhattan neighborhoods stand out as premier examples of seemingly impervious gold-plate fortresses, particularly along Fifth Avenue, Central Park West and Park Avenue. In a building I know well, recent apartments still transact at closing above original asking prices. Bidding wars continue in established coops for coveted two and three bedroom apartments — enough dollars have flowed through from year-end Wall Street bonuses to keep demand strong among the sliver of cash buyers remaining. Some investment bankers and white shoe lawyers desperately seek extra bedrooms for growing families. Meanwhile, foreign money taking advantage of the weak dollar and looking for prime U.S. beachheads sustains Manhattan’s condo buying… for now.