With traditionally low US interest rates and banks dropping their lending criteria, property prices in New York are soaring according to American property experts.

Douglas Wagner, president of the estate brokerage Benjamin James said: "With the interest rates very low and signalling that they will level off, people feel theyre in a once in a lifetime market."

"There are more and more people speculating, because theyve seen the success enjoyed by others," said local estate agent Stephanie Mallios.