Sales of Manhattan properties jumped for the first time in a year and a half, but the good times aren’t likely to last.
Real estate sales volume in Manhattan rose 13% in the second quarter, according to a report from Douglas Elliman and Miller Samuel. The median sales price for an apartment in Manhattan hit a record of $1.2 million while the average sales price remained flat at $2.1 million.
Many brokers and developers are cheering for what they say could mark a turnaround for Manhattan real estate, which had seen six straight quarters of declines. But real estate experts say the real reason for the bump in sales is more troubling: taxes.
New York City’s new mansion tax kicks in on July 1. Many rich buyers raced to close deals in the second quarter to avoid the tax, which adds between 0.25% and 4% in taxes to sales of $2 million or more. Amazon CEO Jeff Bezos, who bought a penthouse in the Flatiron neighborhood in June for around $80 million, saved over $2.5 million in taxes by doing…