Brooklyn New Development Report | MNS is Real Impact Real Estate

Brooklyn New
Development Market Report

4th Quarter 2016

Introduction

MNS is proud to present the Third 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 Fourth Quarter of 2016 (10/01/16 – 12/31/16). All data summarized is on a median basis.

Market Snapshot

Year-Over-Year Median PPSF - up 7.6%
Quarter-Over-Quarter Median PPSF - up 3.7%

Year-Over-Year Median Sales Price - up 24.1%
Quarter-Over-Quarter Median Sales Price - up 20.1%

Brooklyn New Development Sales - up 75.5% from 3Q16
Neighborhood with the Most New Dev Sales - Williamsburg (42.5% of all Brooklyn)

Total New Development Sales Volume - 97.0% to $294.3 Million from $151.7 Million in 3Q16

Highest New Development Sale:
1 John Street PHE, DUMBO – $8,148,500

Highest New Development Sale PPSF:
1 John Street 9B, DUMBO – $2,282/SF

Market summary:

The Brooklyn sponsor sale market grew this quarter, as it did last quarter, by both quantity and volume. Total volume last quarter was $151,711,012 and this quarter it was $294,296,115. This is a nearly doubling (94% increase) in total sales volume. Quantity increased by 75.5%, from 102 units to 179 units. Over the last quarter, the median price per square foot has increased by 4%, from $1,149.15 to $1,191.82, and the median sale price has increased 20%, from $1,017,232 to $1,221,900.

Last quarter, the highest priced sale was in Williamsburg, where a unit sold for over $6.5 million. This quarter, the highest priced sale was in DUMBO at 1 John Street, a 42 unit new development building, where a luxury unit sold for $8,148,500. The highest price-per-square foot was also in 1 John Street, where a unit sold for $2,281.96 a square foot. Last quarter, the highest price per square foot was $1,917.44 and that was reached in Williamsburg.

As it did last quarter, Williamsburg sponsor sales composed the largest proportion of sales this quarter, accounting for 42.5% of quantity. The Oosten at 429 Kent Avenue, which has 216 units, had enormous activity this quarter. The following neighborhoods had no sponsor sales this month: Bay Ridge, Crown Heights, Downtown Brooklyn, Fort Greene, Gowanus, Kensington, and Prospect-Lefferts Gardens.

Williamsburg maintained the spotlight from last quarter, and had even more units sold this quarter than last. Most of this activity was a direct result of the activity at The Oosten, where one and two bedroom units dominated the market. There were no studios that closed in Williamsburg at all, and only one three bedroom unit. The median sale price there was $1,285,541, and the total volume of sales there was $94,787,007. Over the last quarter, the median price per square foot decreased by 11.7% and the median sale price increased by 36.1%, indicating a switch in the market towards larger units which yield higher prices but lower prices per square foot.

Market up-swings:

Based on median sales prices, the largest price upswing was in Carroll Gardens, where the median price per square foot increased from $1,073 per square foot to $1,496 per square foot. Inventory levels here are so low that small changes can cause large percentage swings. The last two quarters, for instance, had no inventory at all. The trend away from studio units continued here. All four units in Carroll Gardens were 3 bedroom units over 1,200 square feet

Market down-swings:

The largest downswing in prices was in Boerum Hill-Cobble Hill, where the median price per square foot decreased from $1,605 to $955. There were no studios here this quarter. This is a 40.5% decrease in price per square foot, and a 79.6% decrease in sales prices.

Market Trends:

There was only one studio that closed this quarter, and thus studios composed less than 1% of quantity. Two bedroom units had the largest quantity this month, composing 41% of units. One bedroom units composed 38% of units, and three bedroom units composed 20% of units. Larger units are becoming more popular, as quantities of studios sales decreases.

*The neighborhoods that sold the most amount of 3Q16 new development inventory per unit size:

Studios - Bushwick (100%)
One-Bedrooms - Willamsburg (43%)
Two-Bedrooms - Willamsburg (62%)
Three Bedroom+ - Brooklyn Heights (47%)

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.

CONTACT US NOW: 212.475.9000

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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