Manhattan luxury real estate sales hold firm despite fears of a 'Mamdani effect'

A month after New York City enacted a tax on second homes, real estate brokers and analysts reported that luxury property sales have not declined. The tax, which took effect in September 2024, imposed a 1% surcharge on residential property sales of $5 million or more where the buyer is not a New York State resident. Some industry participants had predicted the tax would reduce transaction volume among foreign and out-of-state buyers. Sales data from the fourth quarter showed luxury transactions remained at prior-year levels.

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