Price per square foot—a topic of endless fascination round these parts—prompts a reader email: "In response to your Very Popular SoFi 1BR, check this West Village 1BR (about 725 sq ft) out for TEN TIMES AS MUCH. Yep, 725 sq ft for $3.5 million = $4800 per sq ft. Even with the terrace of 500 sq ft it is crazy, as $3.5/1225 = $2850 per sq ft. It is only a few blocks away from what you listed at $520 per sq ft. That's nutso, no?"
Um, maybe? Which reminds us of a great comment from last week we've been meaning to draw attention to. It begins, "I love how you guys get all creamy in the pants over $620sf/$500sf/$433sf..."
And continues, "When the market correctly bottoms, property in Manhattan will be selling for ~$600sf. Which will force the outer boroughs to correct even further downward, closer to $250sf.
Remember, prime property in Manhattan was selling for under $200sf in 1994. (Ex: 1,500sf 1BR loft in Greenwich Village, 20ft ceilings, 10ft windows either side, all yours for $180,000) Using standard calculation of 1-2% YOY over inflation, that should put property ~$500+sf. Not anywhere close to the absurd $1,000-1,500sf.
If you do buy, expect asset depreciation over the next 5yrs. You should make your money back in maybe 10-15yrs...maybe."