NEW YORK ( TheStreet) -- Manhattan, New York has the most expensive real estate in the U.S. The average condo apartment costs more than $1,000 per square foot. A studio condo starting at around $500,000 is the size of a kitchen in a comparable affluent neighborhood in Malaysia.An apartment is a starter home in other parts of the U.S. President Obama, during his Presidential campaign, even gave an example of when they lived a modest life before his book became a bestseller. The example of this modest start was living in a three-bedroom apartment in Chicago. Wow, I wish I live in a three-bedroom apartment in Manhattan. Here, a two-bedroom is large and a three-bedroom condo, at around $2.5 million, is for the rich.
As a Manhattan real estate broker, I know Manhattan's gross rental yield is from 4.5 to 5%. According to Global Property Guide, Hong Kong's gross rental yield is 2.5 to 3%, prime Central London's gross yield is 3.72% and Paris' gross yield is 4.3%. Hence, from an investor's perspective, Manhattan does provide a better rental return for the price. This means that London and Hong Kong property prices are not higher because the rental income they can command is higher. Rather, it's simply because they are more expensive. And Manhattan is less expensive. For the non-investor, it is cheaper to live in Manhattan compared to the other cities. The financial capital and number one ranked real estate market in the world is only tenth in terms of real estate prices. This is why Manhattan is a good value among top global cities.