2nd Quarter 2015
Development Market Report
MNS is proud to present the Second Quarter 2015 edition of our New Development Market Report.
New Development Sales data, defined as such “Arms-Length” first offering transactions where the seller is considered a “Sponsor”, was compiled from the Automated City Register Information System (ACRIS) for sponsor sales that traded during the Second Quarter of 2015 (04/01/15 – 06/30/15). All data summarized is on a median basis.
Year-Over-Year Median PPSF - up 4.4%
Quarter-Over-Quarter Median PPSF - down 12.6%
Year-Over-Year Median Sales Price - up 1.0%
Quarter-Over-Quarter Median Sales Price - down 4.3%
Brooklyn New Development Sales - down 31.9% from 1Q15
Neighborhood with the Most New Dev Sales - Williamsburg (33% of all Brooklyn)
Total New Development Sales Volume - down 15.2% to $63.7 Million from $75.1 Million in 1Q15
Highest New Development Sale:
2A Strong Place Apt 1, Cobble Hill – $4,327,562
Highest New Development Sale PPSF:
201 North 11 Street Apt 3, Williamsburg – $1,814/SF
The total number of New Development Sponsor sales in Brooklyn decreased by 31.94% since 1Q15. The following neighborhoods did not account for any New Development sales during this time: Carroll Gardens, DUMBO, Fort Greene, Kensington, Prospect Heights and Prospect-Lefferts-Gardens. The decrease in sales can be attributed to the pre-selling of new construction buildings that are not set to be complete until later this year/early next, coupled with the overall minimal number of new condo inventory in the market [relative to rentals]. However, as we see new condos hitting the market - for example; 190 S 1st st, 212 N 9th st and 280 Metropolitan ave in Williamsburg; 51 Jay st, 47 Bridge st, 1 John st and 90 Furman st in DUMBO; we expect these numbers to increase over the next few quarters when closings are set to take place.
Bay Ridge experienced the largest market up-swing in first quarter report as median price per square-foot increased by 28.5% from $453 to $582 and median sales price increased 30% from $641,497 to $833,947. This was contributed to a sole unit sale at 9907 3rd ave – a 12 loft condominium complex. More notably, is the increase in number of sponsor sales in Williamsburg which increased from only 4 in 1Q15 (namely at 260 North 9th st) to 16 sales in the current quarter across not only 260 North 9th st, but also the N 3rd Townhomes (129 N 3rd st), 201 N 11th st and 172 N 10th st.
This quarter’s largest market down-swing was seen in Park Slope. Median price per square foot decreased 43.1% from $1,415 to $805 and Median Price fell by 22.3% from $1,573,196 to $1,221,900. This down-swing was solely due to a decrease in sales from 1Q15 where we saw 4 sales in the newly converted building at 582 22nd st, to the current quarter which was dominated by a single sale at the 6 unit boutique condominium at 455 12th st which sold for $1,221,900.
The number of sponsor sales decreased by 31.94%, from 72 sales in the previous quarter to 49 sales this quarter. The neighborhoods that accounted for the highest number of New Development sponsor unit sales were in Williamsburg, with 16 transactions and in BedStuy, with 15 transactions. With many buildings now pre-selling, we expect sales volume to increase steadily over the next few quarters.
*The neighborhoods that sold the most amount of 2Q15 new development inventory per unit size:
Studios - Bed Stuy and Boerum Hill/Cobble Hil (4%)
One-Bedrooms - Williamsburg (29%)
Two-Bedrooms - BedStuy, Williamsburg, Park Slope (18%)
1,500 + SF - BedStuy and Williamsburg(49%)
Included in this research are walk-up and elevator new development condominium buildings, as well as new conversion condominiums if the sales were applicable sponsor transactions. Excluded from the report are all cooperative sales.
Unit types such as studios, one-bedrooms, and two-bedroom units are grouped by square footage ranges. Studios are under 700 square feet, one-bedrooms are under 900 square feet, and two-bedrooms are under 1,450 square feet. Added to the report is the over-sized unit type that ranges from 1,500 square feet to 7,000 square feet.
Presented with a quarter-over-quarter and year-over-year comparison, both city-wide and by neighborhood, MNS New Development ReportTM tracks the market trends throughout Manhattan and Brooklyn. MNS offers a unique insight into the new development market by tracking stalled construction sites on a quarterly basis, a great indicator of where development in general is moving. MNS is your source to find neighborhood price per square foot analysis, average sale prices, unit type sales trends, overall price movement, neighborhood inventory comparisons, and absorption rates.
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Note: All market data is collected and compiled by MNS's marketing department. The information presented here is intended for instructive purposes only and has been gathered from sources deemed reliable, though it may be subject to errors, omissions, changes or withdrawal without notice.
TABLE OF CONTENTS
- Market Snaphot
- Neighborhood Price Trends
- The Report Explained
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