2nd Quarter 2016
Development Market Report
MNS is proud to present the Second Quarter 2016 edition of our New Development Market Report.
MNS is proud to present the Second Quarter 2016 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 First Quarter of 2016 (04/01/16 – 6/30/16). All data summarized is on a median basis.
Year-Over-Year Median PPSF - up 5.8%
Quarter-Over-Quarter Median PPSF - down 9.91%
Year-Over-Year Median Sales Price - up 6.3%
Quarter-Over-Quarter Median Sales Price - up 14.3%
Brooklyn New Development Sales - up 3.6% from 1Q16
Neighborhood with the Most New Dev Sales - BedStuy (24% of all Brooklyn)
Total New Development Sales Volume - up 17.61% to $90.4 Million from $106.28 Million in 2Q16
Highest New Development Sale:
210 Pacific Street 6, Boerum Hill – $5,252,150
Highest New Development Sale PPSF:
210 Pacific Street 4E, Boerum Hill – $1,687/SF
Brooklyn’s sponsor sale market activities increased slightly this quarter, with the number of sponsor sales increasing by 3.6% from 84 units sold in 1Q16 to 87 units sold in 1Q16, while total sales volume increased by 17.61 from $90,369,473 to $106,284,859. From a pricing standpoint, median price per square foot decreased by 9.91% - from $1,162.51 in 1Q16 to $1,047.25 as median sales price increased by 14.30% from $865,258 in 1Q16 to $989,000 in 2Q16.
The most sponsor sale activity this quarter was seen in BedStuy which made up 24.14% of the total sales, the majority of which were from the chic new 12 unit condo at 37-39 Madison St. These closings also influenced the increase in sales prices and price per square foot that the neighborhood saw this quarter. Meanwhile, the following neighborhoods did not account for any Sponsor Sales this quarter; Bay Ridge, Brooklyn Heights, Carroll Gardens, DUMBO, Fort Greene, Gowanus, Kensington, Prospect-Lefferts Gardens.
The highest sale price and price per square foot was observed in Boerum Hill at 210 Pacific St where Apt 6 sold for $5,252,150 and Apt 4E sold for $1,687.05 per square foot.
Not far behind, was Williamsburg which saw a 11.3% increase in price per square foot and 47.6% increase in sales price. Despite having 3 of its
BedStuy saw the largest growth in median sales prices this quarter, increasing by 65.7% from $510,000 to $845,000, from the various closings at 37-39 Madison St. The largest growth the median price per square foot was seen in Boerum Hill-Cobble Hill which increased by 28.8% from $1,236 to $1,593 per square foot as more than half of this month’s closings came from the 8 unit building at 210 Pacific street.
The largest down swing was seen in Crown Heights where the average price per square foot dropped by 12.5% from $835 to $730 per square foot as we saw many closings at 1670 Dean St which comprises of many oversized apartments. From a median price standpoint, Prospect Heights saw the large decrease at 37.3% from $1,130,521 to $708,568 due to majority of closings this quarter coming from 1 bedroom apartments. Despite this decrease, price per square foot increased by 17.6%
Unlike last quarter which was relatively balanced in terms of the number of studio/1bedroom and 2bedroom/3bedroom+ closings, this quarter saw a decrease in studio closings to only 4.6%, while 1 bedroom sales made up 31.03%, 2 bedrooms 36.78% and 3bedrooms+ 27.59%.
*The neighborhoods that sold the most amount of 1Q16 new development inventory per unit size:
Studios - Bedford-Stuyvesant (40%)
One-Bedrooms - Greenpoint (71%)
Two-Bedrooms - Greenpoint (50%)
1,500 + SF - Boerum Hill & Cobble Hill (35%)
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.
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).
TABLE OF CONTENTS
- Market Snaphot
- Neighborhood Price Trends
- The Report Explained
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