Brooklyn New
Development Market Report

2018 2nd Quarter

Introduction

MNS IS PROUD TO PRESENT THE SECOND QUARTER 2018 EDITION OF OUR NEW DEVELOPMENT MARKET REPORT.

NEW DEVELOPMENT SALES DATA, DEFINED AS “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 2018 (4/01/18 – 6/30/18). ALL DATA IS SUMMARIZED ON A MEDIAN BASIS.

Market summary:

FOR THE THIRD QUARTER IN A ROW, TOTAL SALES VOLUME OF BROOKLYN SPONSOR SALES HAS INCREASED, FROM $286,528,419 DURING 1Q18 TO $382,315,602 DURING 2Q18, A 33.4% QUARTER-OVER-QUARTER INCREASE. THE TOTAL NUMBER OF BROOKLYN SPONSOR SALES EXPERIENCED A 37.4% QUARTER-OVER-QUARTER INCREASE, FROM 206 INDIVIDUAL SALES DURING 1Q18 TO 282 INDIVIDUAL SALES DURING 2Q18. QUARTER-OVER-QUARTER, THE MEDIAN PRICE PER SQUARE FOOT DECREASED BY 7.2%, WHILE THE MEDIAN SALES PRICE DECREASED BY 11.6%. WHEN COMPARED TO THIS QUARTER LAST YEAR, THE MEDIAN PRICE PER SQUARE FOOT HAS INCREASED BY 2.1%, WHILE THE MEDIAN SALES PRICE INCREASED BY 0.5% IN THAT SAME SPAN.

THIS QUARTER, THE MOST EXPENSIVE SPONSOR UNIT SALE OCCURRED AT 171 COLUMBIA HEIGHTS IN BROOKLYN HEIGHTS. UNIT 8AB, A COMBINATION OF TWO UNITS, SOLD FOR $11,000,350 OR $2,262.05 PER SQUARE FOOT. UNIT 8AB WAS ALSO THE HIGHEST PRICE PAID PER SQUARE FOOT THIS PAST QUARTER.

THIS QUARTER, THE LARGEST PERCENTAGE OF SPONSOR SALES BY NEIGHBORHOOD OCCURRED IN BOERUM/COBBLE HILL, WHERE 15.9% OF ALL BROOKLYN 2Q18 SPONSOR SALES TOOK PLACE. THIS TRANSLATES TO 45 OUT OF THE TOTAL 282 SPONSOR UNIT SALES IN BROOKLYN DURING 2Q18. A LARGE PERCENTAGE OF SPONSOR UNIT SALES IN BOERUM/COBBLE HILL OCCURRED AT THE NEVINS, WHICH IS LOCATED AT 319 SCHERMERHORN STREET. AN IMPRESSIVE 19 OUT OF THE TOTAL 45 NEIGHBORHOOD SPONSOR SALES TOOK PLACE THERE.

Market up-swings:

THE LARGEST QUARTERLY UP-SWING OCCURRED IN DUMBO, WHERE THE MEDIAN PRICE PER SQUARE FOOT INCREASED BY 15.5%, FROM $1,480 TO $1,709. ADDITIONALLY, THE MEDIAN SALES PRICE IN DUMBO INCREASED BY 13.3%, FROM $2,695,000 TO $3,053,000.

Market down-swings:

THE LARGEST DOWN-SWING THIS QUARTER OCCURRED IN FORT GREENE, WHERE THE MEDIAN PRICE PER SQUARE FOOT DECREASED BY 26.3%, FROM $1,347 TO $993. ADDITIONALLY, THE MEDIAN SALES PRICE QUARTER-OVER-QUARTER IN FORT GREENE INCREASED BY 16.3%, FROM $1,718,806 TO $1,999,000. THIS PRICE SWING CAN BE EXPLAINED BY THE LOW QUANTITY OF SPONSOR SALES IN THE AREA, WHICH OFTEN LEADS TO DRAMATIC PRICE SWINGS.

Market Trends:

DURING THE SECOND QUARTER OF 2018, FIFTEEN STUDIO SPONSOR UNITS WERE SOLD, REPRESENTING 5% OF ALL SPONSOR UNIT SALES IN BROOKLYN. ONE-BEDROOM SPONSOR UNITS REPRESENTED 33% OF ALL SPONSOR SALES, OR 93 OUT OF 282 TOTAL SALES. TWO-BEDROOM SPONSOR UNITS REPRESENTED 35% OF ALL SPONSOR SALES DURING 2Q18, OR 100 OUT OF 282 TOTAL SALES. THREE-BEDROOM OR LARGER SPONSOR UNITS COMPRISED THE REMAINING 26% OF SPONSOR SALES THAT OCCURRED DURING 2Q18, OR 74 OUT OF 282 TOTAL SPONSOR SALES.

Neighborhoods where the majority of each unit type was sold in 2Q18:

Studios - BUSHWICK (40%)
One-Bedrooms - Williamsburg (25%)
Two-Bedrooms - Bedford-Stuyvesant (17%)
Three Bedroom+ - BOERUM/COBBLE HILL (18%)

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.

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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.

If you would like to republish this report on the web, please be sure to source it as the "Manhattan New Development Report" with a link back to its original location (http://www.mns.com/brooklyn_new_dev_report).

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