Manhattan Luxury Sales Hold Firm in June with 126 Contracts Above $4M Despite New 'Pied-à-Terre' Tax

According to Olshan Realty and Brown Harris Stevens, luxury apartment sales in Manhattan remained strong in June with 126 contracts signed for properties priced at $4 million or above, up from 124 in the same period last year. The average price of a Manhattan apartment reached its second-highest level ever during the second quarter, climbing 5% year-over-year to roughly $2.2 million. High-end segment sales surged, with condos priced between $10 million and $20 million up 55%, while those over $20 million rose 33%, according to Compass.

Brokers attribute the strength to abundant liquidity from recent IPOs and soaring wealth from asset prices, which have outweighed buyer concerns about the pied-à-terre tax passed on May 27. Luxury inventory has fallen 40% compared to last year and reached the lowest level since 2004, according to Miller Samuel CEO Jonathan Miller, adding pressure on prices as ultra-wealthy buyers prioritize market timing over tax concerns.