Page last updated at 09:48 GMT, Friday, 18 April 2008 10:48 UK

Manhattan property defies gravity

Greenwich Village housing block
Manhattan property is still in high demand

Property prices in Manhattan have soared 41% at the start of this year, defying the US economic slowdown.

Despite belt-tightening and record losses at Wall Street banks, demand for luxury dwellings was strong, said the association of New York estate agents.

On average a Manhattan home costs $1.6m (0.8m), up from $1.1m a year ago.

However in other parts of New York City property prices are on the slide, with Queens and Staten Island down 5% and the Bronx slipping 1%.

Across the city prices rose 28%, driven mainly by Manhattan's gains, said the Real Estate Board of New York, an association of estate agents, builders and financial service companies.

Another winner was Brooklyn, although property prices there gained just 3% year-on-year.

"Manhattan's luxury market for high-end properties continues to remain untouched by the slowing economy," said the Real Estate Board's president Steven Spinola.

New York had limited space, he said, and several luxury developments had just become available to meet the "pent-up demand".

The report tracks recorded real estate deals of all residential property in New York City.


SEE ALSO
Job cuts shake Wall Street nerves
27 Mar 08 |  Business
Further fall in US housing sales
08 Apr 08 |  Business
US economy in slowdown says Fed
05 Mar 08 |  Business
Foreclosure wave sweeps America
05 Nov 07 |  Business

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