New York - The Financial Hub of USA
New York, deemed as a global city, is a primary node in the global economic network. This megacity, is one of the world's most populous cities and is described as a cultural, financial, media, fashion and tourism capital of the world. New York City is sectioned into 5 boroughs: Manhattan, Brooklyn, Queens, The Bronx and Staten Island with Manhattan as a leading financial hub in the world, hosting the New York Stock Exchange and NASDAQ besides international financial institutions including JP Morgan, Goldman Sachs, Citigroup, US technology conglomerate Verizon and Pfizer, the largest medicine manufacturer in the world.
How New York Became a Global Finance Center
New York is one of the most renowned financial centers of the world. According to a report by UK Z/Yen’s 24th issue of GFCI, New York is ranked ahead of London. Japan’s GPCI report in 2018 placed New York in the second place for 7 consecutive years, after it ranked first in 2011.
New York’s economic performance has steadily exceled passing through the financial crisis and 911 terrorist attack. New York City experienced the lowest 1% growth in its GDP since 2014 to 2018 and the highest of 3.5% in 2018, an increase from 2.6% in the previous quarter. New York City’s unemployment rate remains the lowest at 4.1%. Within the 5 boroughs, Queens and Manhattan experience the lowest unemployment rate at 3.6% and 3.7% respectively, representing a strong labor market.
The Uprising of Manhattan's Property Market
New York's property market remains to be the most stable real estate market globally for wealth preservation and Manhattan's market is further the top market for foreign buyers in the US. Statistics show that on average, listings sell within 100 days on the market, making it one of the most liquid real estate market in the world. The market is additionally highly transparent with listings regulated by the government.
S&P Case Shiller’s housing index shows that New York City’s property market has continuous grown since 2012. In November 2018, the index reached 202.44, much higher than its 180.42 three years ago, increase by an index of 22. In March 2012, the index reached around 157.4. The steady increase is a indicative of the city’s strong and preserving market growth.
Manhattan is backed by a strong economic background, hence, its property market parallels that growth. Douglas Elliman’s report of the city’s property market from 2008 to 2017 revealed that condominiums and co-ops were priced at USD 1,775 per square foot in 2017, a 67% growth from USD 1,060 per square foot in 2010. Statistics show that on average, listings sell within 100 days on the market, making it one of the most liquid real estate markets in the world. The market is additionally highly transparent with listings regulated by the government.
The Metropolitan's Rising Population
To compensate for the increasing population within the city and a growing consumer market, it is expected that New York’s trades will increase by 68%. The government of New York will launch a USD 1 billion Freight NYC project in 2018 to transform New York City into a trading hub with deep sea ports, railway infrastructure and container support systems to radically redevelop its trading policies and infrasturtures. The plan will create a number of new job opportunities and additionally place New York City into an economically stable platform.
Driving Force from Tech Giants
Tech giants, Amazon and Google both have plans to migrate into New York. In November 2018, Amazon announced its plans to set up its second headquarter in Queens on Long Island bringing in another 25,000 job positions. Google, on the other hand, has plans to set up its office in New Garden District at Hudson Square spanning over 170 thousand square feet and will lease its Chelsea Market, the plan will double the size of its labor team. New York will receive a number of professionals and elite workers into the city, to further stimulate its property market.