The change promised by the new presidency cannot come too soon for the US housing market, which has been assailed by the sub-prime mortgage scandal and the bank failures and financial market storms that ensued from it. New York may not have suffered the same degree of catastrophic property falls that have afflicted other towns and cities - indeed, for a while, various Manhattan neighbourhoods, like some London postcodes, remained unscathed. But now, like London, New York is hoping for economic policies that will ease the effects of the downturn. Barack Obama has already proposed a tax credit of 10 per cent of mortgage payments for struggling homebuyers, but there are now calls for further measures.

The New York market has not been entirely moribund during the summer and autumn months; some developments, where prices start at $700,000 (£441,000) for a studio apartment, have nearly sold out.

Until the dollar began to strengthen several weeks ago some of this demand came from overseas buyers, including Britons who were exploiting currency weakness and developer “close-out” discounts. Demand was relatively strong even in the Financial District, the gentrified residential areas in and around Wall Street, despite the casualties among financial institutions and job losses. Successes included the Cipriani Club Residences and 20 Pine by Armani Casa - which tells you something about the pulling power of international brands. The 1850s Cipriani building, in prime position on Wall Street itself, has sold 91 out of 106 luxury flats. The Armani project, in a 1920s tiered skyscraper two minutes' walk away, has sold 384 out of 409 units.

In September, just as the crisis in the financial markets was at its height, the record for a residential sale price in the Financial District was broken with the sale of a penthouse for $7.82million at the Setai (it's a Malaysian brand name).

Future prospects depend, however, on how many Wall Streeters still have the funds to rent fancy apartments close to their offices. About 90per cent of purchasers at 20 Pine were buy-to-let investors. As the dollar has strengthened, exchange-rate bargains for British and European buyers have disappeared but market bargains may surface as developers try to shift remaining units in the next six months.

Mark Harvey, the head of international development research at the upmarket estate agent Knight Frank, says: “New projects in trendy downtown areas like SoHo and TriBeCa might be caught short and buyers could snap up a good deal here.

“If a developer is keen to clinch a sale, a British buyer might be able to negotiate a favourable exchange rate privately and get a better deal than on the open market. A year ago homes were taking four months to sell. Now they are taking eight months and soon it will take even longer.”

Among overseas and local buyers, the focus is moving away from statement luxury towards quality homes, sustainable living and neighbourhood regeneration. A green belt running all the way around the edge of Manhattan is almost complete and will provide a cycle path encircling the island. The website greenhomenyc.org has a database of environmentally friendly apartment buildings throughout New York.

It is by no means comprehensive but is a good place to start for overseas buyers interested in what's out there. Battery Park City is Manhattan's exemplary model for sustainable living: this residentgoverned community in converted docklands is the ultimate for anyone wanting a green lifestyle in NYC.

Vibeke Lichten, the architect of a new boutique eco-development called Tribeca Town Homes, says that the Lower West Side is the district for buyers keen on green initiatives. She adds: “TriBeCa appeals to Europeans because the streets are spacious and it is quiet and residential after about 5pm, which is hard to find in New York. That's also why many film stars live here - because it's private and laid-back.”

Lichten, a long-time eco-enthusiast, laments that “US building efficiency laws are way behind those in Europe, but at least now a voluntary green building guide has been instigated”. Her building comprises five sustainable loft-style flats, perhaps rather ambitiously priced between $1.5million and $8.5 million. They are sleek and modern but the duplex and triplex units feel distinctly European, despite the Manhattan views.

The entire West Side is promisingly dotted with community-boosting improvements. The High Line, a disused railway line that is now a raised park, based on the Promenade Plantée in Paris, has provided a focal point for its surrounding Chelsea neighbourhood, which was previously rather disparate and lacking green space. Farther uptown a remodelling of the Lincoln Centre cultural hub will open up the westerly façade of the block to a down-at-heel neighbourhood that has to date been excluded by the centre's east-facing design.

The area most clearly earmarked for redevelopment is the Lower East Side. Like the East End of London, it remains just about cheap enough to be inhabited by hipsters, students and first-time buyers. Numerous newbuilds have gone up this year, including the unpopular Avalon Building, but large-scale schemes are now likely to stall until the financial world recovers.

Details: Cipriani Club Residences and 20 Pine via houseloft.com; Tribeca Town Homes via chesterton-international.com

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