Brooklyn New
Development Market Report

2018 4th Quarter

Introduction

MNS is proud to present the Fourth 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 First Quarter of 2017 (10/01/18 – 12/31/18). All data is summarized on a median basis.

Market summary:

Following a dip last quarter, the total sales volume of Brooklyn sponsor units increased by 22.7% quarter-over-quarter, from $196,515,409 during 3Q18 to $241,142,324 this past quarter. The total number of Brooklyn sponsor sales increased by 26.8% quarter-over-quarter, from 138 total sales during 3Q18 to 175 total sales during 4Q18. Quarter-over-quarter, the median price per square foot decreased by 4.0%, from $1,199.28 during 3Q18 to $1,151.15 during 4Q18. Median sales price also experienced a quarter-over-quarter drop, falling by 4.1%, from $1,146,839 during 3Q18 to $1,100,000 during 4Q18. Year-over-year, the median price per square foot decreased by 6.5%, while the median sales price improved by 11.4%.

Once again, the highest price paid for a Brooklyn sponsor unit was at The Standish at 167-171 Columbia Heights in Brooklyn Heights. The penthouse unit sold for an impressive $16,745,121. At 6,218 square feet, the buyer paid $2,693 per square, making this purchase simultaneously the highest price paid for a sponsor unit and the highest price paid per square foot for a sponsor unit during 4Q18.

This past quarter, the largest percentage of Brooklyn sponsor sales was in Williamsburg, where 22.3% of all sponsor sales occurred. This translates to 39 out of the 175 total sponsor unit sales that took place in Brooklyn during 4Q18.

Market up-swings:

The largest quarterly up-swing occurred in Carroll Gardens where the median price per square foot increased by 23.4%, from $1,217 to $1,502. Additionally, the median sales price in Carroll Gardens increased by 51.2%, from $992,794 to $1,500,732.

Market down-swings:

The largest down-swing this quarter occurred in Brooklyn Heights, where the median price per square foot decreased by 40.5%, from $2,373 to $1,413. Additionally, the median sales price in Brooklyn Heights decreased by 24.3%, from $7,135,000 to $5,403,350. 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 fourth quarter of 2018, nine studio sponsor units were sold, representing 5.14% of all sponsor unit sales in Brooklyn. One-bedroom sponsor units represented 28.00% of all sponsor sales, or 49 out of 175 total sales. Two-bedroom sponsor units represented 44.57% of all sponsor sales during 4Q18, or 78 out of 175 total sales. Three-bedroom or larger sponsor units comprised the remaining 22.29% of sponsor sales that occurred during 4Q18, or 39 out of 175 total sponsor sales.

Neighborhoods where the majority of each unit type was sold in 4Q18:

Studios - Williamsburg & Bedford Stuyvesant (44%)
One-Bedrooms - Williamsburg (43%)
Two-Bedrooms - Park Slope (18%)
Three Bedroom+ - Park Slope (31%)

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 are separated into studios, one-bedrooms, two-bedrooms and three-bedrooms+. Square footages are reported in accordance with the building’s filed condo declaration. Typically, studios are under 550 square feet, one-bedrooms range from 500-750 square feet, two-bedrooms from 800-1,000 square feet and three-bedrooms+ from 950 square feet to in excess of 1,500 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: 718.222.0211

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).

Brooklyn New Development
market report archive

Tools

  • Determine if it's better to rent or to buy by filling in a few numbers and percentages.

  • Check out samples of leases and riders you will find throughout the Manhattan rental market.

  • A list of maps and transit options available in New York City and beyond.

  • Print out our moving checklist so you can be sure to have all your ducks in a row before you move.

  • Know the pertinent steps to buying an apartment in Manhattan. The guidance you receive can make or break your deal. Know before you go.

  • We know real estate terms and abbreviations can get confusing, so we’ve put together a list of terms and definitions for you.