MNS is proud to present the Third Quarter 2013 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 2013 (7/01/13 – 9/30/13). All data summarized is on a median basis.
Year-Over-Year Median PPSF - up 12.0%
Quarter-Over-Quarter Median PPSF - up 10.8%
Year-Over-Year Median Sales Price - up 7.9%
Quarter-Over-Quarter Median Sales Price - up 1.7%
Brooklyn New Development Sales Inventory - up 12.2% from 2Q13
Neighborhood with the highest inventory - Carroll Gardens (18.5% of all Brooklyn)
Total New Development Sales Volume - up 13.1% to $166.8 Million from $147.5 Million in 2Q13
Largest Quarterly Up-Swing: Clinton Hill
PPSF $799/SF from $579/SF
Sales Price $713K from $534K
Largest Quarterly Down-Swing: Prospect Heights
PPSF $704/SF from $840/SF
Sales Price $586K from $735K
Highest New Development Sale:
Brooklyn Heights-9 College Place- 1H – $3,232,943
Highest New Development Sale PPSF:
Carroll Gardens- 209 Smith Street -1B – $2,564/SF
The Brooklyn New Development market remained strong in terms of increased price and total sales. The number of transactions and sales volume each increased by double digits relative to the previous quarter. This upward trend was driven by a rise in the number of Three Bedroom units sold which achieved the highest Price Per Square Foot (PPSF) of any unit since the beginning of 2013. Although New Development activity showed superior returns throughout the quarter, three neighborhoods did not experience any sponsor sales this quarter: Bay Ridge, Prospect-Lefferts Gardens and Bushwick. This comes as Bushwick has offered very consistent returns in the past several quarters, increasing by nearly 50% in terms of PPSF over the last two years.
Clinton Hill and Fort Greene continue to offer substantial returns –both on a short and long term basis. Both neighborhoods
experienced over a 25% increase In PPSF since the previous quarter continuing the long-term trend of demand for New
Development properties in these neighborhoods. Median PPSF levels have risen in Clinton Hill and Fort Greene by 31% and 38% over
the last twelve months, respectively. This trend has been seen throughout Brooklyn as Median PPSF and Median Sales price have
both increased by over 30% over the past two years.
Carroll Gardens experienced a series of New Development sales throughout 3Q13, representing over 18% of all transactions throughout Brooklyn in that time. Following the aforementioned trend, sponsor sales of Three Bedroom units continued to achieve considerable returns.
Bedford-Stuyvesant experienced the sharpest quarterly decline –dropping 22% in terms of PPSF. With this said, this follows a strong New Development performance throughout the second quarter, where the PPSF increased by 20%. Moreover, the median sales price still increased slightly, 5%, compared to the previous quarter, but sales of over-sized three bedroom units in Bedford-Stuyvesant had a downward effect on PPSF.
Inventory for Studio units across the Brooklyn market remained low –representing a mere 8.15% of total transactions. One and Three Bedroom units represented the majority of New Development Sales throughout 3Q13. Specifically, sales of One Bedroom units in Greenpoint represented 28% of One Bedroom units sold throughout Brooklyn, while 33% of all Three Bedroom units were seen in Carroll Gardens. Furthermore, Three Bedroom units comprised 45% of all New Development Sales throughout 3Q13.
The neighborhoods that sold the most amount of 3Q13 new development inventory per unit size:
Studios - Brooklyn Heights (20%)
One-Bedrooms - Greenpoint (28%)
Two-Bedrooms - Greenpoint / Kensington (15%)
Three-Bedrooms - Three Bedrooms Carroll Gardens (33%)
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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