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Brooklyn New
Development Market Report

2nd Quarter 2014

Introduction

MNS is proud to present the Second Quarter 2014 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 2014 (04/01/14 – 06/30/14). All data summarized is on a median basis.

Market Snapshot

Year-Over-Year Median PPSF - up 29.7%
Quarter-Over-Quarter Median PPSF - up 23.6%

Year-Over-Year Median Sales Price - up 26%
Quarter-Over-Quarter Median Sales Price - up 19.1%

Brooklyn New Development Sales Inventory - 84.5% from 1Q14
Neighborhood with the Most New Dev Sales - Greenpoint (21% of all Brooklyn)

Total New Development Sales Volume - 163% to $169.6 Million from $64.4 Million in 1Q14

Largest Quarterly Up-Swing: Williamsburg
PPSF $1,244/SF from $821/SF
Sales Price $1,767,338 from $1,185,761

Largest Quarterly Down-Swing: Boerum Hill & Cobble Hill
PPSF $700/SF from $1,020/SF
Sales Price $661,080 from $952,807

Highest New Development Sale:
360 Furman Street Apt.1302, Brooklyn Heights – $ 4,991,561

Highest New Development Sale PPSF:
75 Columbia Street Apt.1A, Cobble Hill – $2,937/SF

Market summary:

The total number of New Development Sponsor sales in Brooklyn jumped up 84.5% from 1Q14. The following neighborhoods did not account for any New Development sales during this time: Kensington and Prospect-Lefferts Gardens. The sharp increase in the number of sponsor sales in Brooklyn is likely due to an excited New Development condominium market this past spring season. Median sales pricing in all of Brooklyn increased 19% from the previous quarter and Median Price per Square Foot increased 24% compared to 1Q14.

Market up-swings:

This past quarter sponsor sales in Brooklyn Heights accounted for 13.33% of all New Development sponsor sales in Brooklyn. Brooklyn Heights Median Price per Square Foot and Median Sales Price has increased every quarter since 4Q13. Since 1Q14 Median Price per Square Foot increased 22.2% from $1,033 to $1,262 and Median Sales Price increased 64.3% from $1,417,791 to $2,329,247. These large shifts are due to twelve new three bedroom units from 183 Columbia Heights and 30 Henry Street, two luxury buildings, entering the market. Although Williamsburg only accounted for 9.16% of total new development sales reported, the Median Price per Square Foot increased 51.5% from $821 to $1244 and the Median Sales Price shot up 49% from $1,185,761 to $1,767,338. This sharp increase was due to six luxury condominiums being sold at or around the $2 million mark. These two data points confirm that the Brooklyn waterfront is still the top location for new developers to invest time and money.

Market down-swings:

This quarter’s largest market down-swing was seen in Boerum Hill and Cobble Hill. Median Price per Square Foot fell 31.4% from $1,020 to $700 and Median Sales Price fell 30.6% from $952,807 to $661,080. Clinton Hill also fell 25.6% (PPSF) and 26.5% (Sales Price). These negative shifts can be attributed to several high priced units leaving the market since last quarter, pushing this quarter’s median prices down.

Sales Volume:

One-Bedroom units and Three-Bedroom units represented 25% and 44% of all sales in Brooklyn during 2Q14, respectively. New Development Condominiums in Williamsburg currently has 48 buildings in development and will continue to see high growth margins throughout the rest of the year and the next.

The neighborhoods that sold the most amount of 4Q13 new development inventory per unit size:

Studios - Brooklyn Heights (20%)
One-Bedrooms - Greenpoint (32%)
Two-Bedrooms - Bed Stuy (23%)
1,500 + SF - Brooklyn Heights (25%)

The Report Explained

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.

Can't find what you're looking for? Ask MNS for more information at www.mns.com.

CONTACT US NOW: 212.475.9000

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.

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