3nd Quarter 2015
Development Market Report
MNS is proud to present the Third Quarter 2015 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 Third Quarter of 2015 (06/01/15 – 09/30/15). All data summarized is on a median basis.
Year-Over-Year Median PPSF - up 55.6%
Quarter-Over-Quarter Median PPSF - up 9.5%
Year-Over-Year Median Sales Price - up 18.0%
Quarter-Over-Quarter Median Sales Price - up 2.6%
Brooklyn New Development Sales - up 173% from 2Q15
Neighborhood with the Most New Dev Sales - Crown Heights (20% of all Brooklyn)
Total New Development Sales Volume - up 136% to $150.3 Million from $63.7 Million in 2Q15
Highest New Development Sale:
201 North 11th Street, Unit 1, Williamsburg – $3,330,113
Highest New Development Sale PPSF:
142 North 1st Street Apt 1A, Williamsburg – $1,941/SF
As the number of sponsor sales almost tripled – from 48 in 2Q15 to 134 in 3Q15 – the total sales volume for the quarter increased immensely, from $63,659,265 in the second quarter to $150,271,423 in the third quarter. Median price per square foot and median price grew at 9.5% and 2.6%, respectively since the previous quarter. While sales in Crown Heights, Downtown Brooklyn and Williamsburg attributed to just over half the total inventory, the following neighborhoods did not account for any New Development Sales during the Third Quarter: Brooklyn-Heights, DUMBO, Fort-Greene, Kensington, Prospect Heights and Prospect Lefferts Garden. As we continue to see selling and pre selling of new units across the borough – for example; 550 Vanderbilt Avenue, 190 South 1 Street, 212 North 9th Street, 280 Metropolitan Avenue, 51 Jay Street, 47 Bridge Street and 1 John Street; we expect a continued upward growth in Brooklyn sponsor sales over the coming quarters.
Clinton Hill experienced the largest increase in the median price per square foot, increasing 38.9% from $759 in 2Q15 to $1,055 in 3Q15. This significant increase was the result of a studio-heavy quarter of sponsor sales from 531 Vanderbilt Avenue. With the median price of said studios coming in at just under $600,000, we also saw a slight dip in the median price in the neighborhood.
Williamsburg took the spot of the neighborhood with the largest upward shift in median price this quarter, with median prices increasing 22.9% from $1.401million in 2Q15 to $1.721million in 3Q15, as several larger sized apartments at 172 North 10th st and the Williamsburg Townhomes on North 3rd st - priced in excess of $2million - closed. The neighborhood also saw the 2 individual sales with the highest price and highest price per foot. The boutique development at 201 North 11th st closed RES1 this quarter, at $3,330,1113, while Apt 1A at 142 North 1st street closed at $1,940.84 per square foot.
Boerum Hill and Cobble Hill saw one of the largest market down-swings in median price per square foot and median price this quarter, dropping 14.5% and 34.7%, respectively, as studios and 1 bedroom apartments under $580,000 attribute to 50% of the quarters closings. Crown Heights also saw a large dip in the median price as 17 of the 27 closings this quarter were from studios across 954 Bergen st and 857 St Marks Ave, which were all priced below $575.,000.
As the quantity of sales in Downtown Brooklyn increased from 1 unit in 2Q15 – a $3.3million 3 bedroom apartment – to 22, namely at 388 Bridge st, the median price of units in the neighborhood also dropped as a result of a more robust sample, diluting the effect of the previous quarter’s sole closing.
The total Sales Volume in Brooklyn grew substantially – from $63,659,265 in 2Q15 to $150,271,423 in 3Q15, with sales activity increasing from 49 sponsor sale units in second quarter to 134 sponsor sale units in third quarter. The highest number of New Development sponsor sales was seen in Crown Heights at 20.15% with 27 transactions – 22 of which were from 954 Bergen St. Williamsburg saw the second highest sales activity, with 25 sponsor sales this quarter – almost double the amount of the previous quarter.
*The neighborhoods that sold the most amount of 2Q15 new development inventory per unit size:
Studios - Crown Heights (50%)
One-Bedrooms - Crown Heights(27%)
Two-Bedrooms - Downtown Brooklyn (26%)
1,500 + SF - Williamsburg (34%)
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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