Manhattan Apartment Prices Sky High

Demand for luxury apartments, combined with limited supply, are driving up apartment prices in Manhattan, the Australian Financial Review has reported.

According to new research, the average sale price of all co-ops and condominiums in the second quarter was $US1.87 million ($2.43 million), an increase of 11 per cent on  the past 12 months and the highest in 26 years of data keeping.

The statistics were from a report by appraiser Miller Samuel and brokerage Douglas Elliman Real Estate.

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"Demand is being driven by a vibrant local economy and rising employment and supply is relatively inelastic," said Jonathan Miller, president of Miller Samuel, to the AFR.

"This has been building for the last year and a half."The AFR reported that the previous record average price for a Manhattan apartment was $US1.77 million, in the first quarter of 2014.