MNS Real Impact Real Estate

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 Snapshot

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%)