MNS is proud to present the First 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 First Quarter of 2013 (1/01/13 – 3/31/13). All data summarized is on a median basis.
Year-Over-Year Median PPSF - up 16%
Quarter-Over-Quarter Median PPSF - up 8%
Year-Over-Year Median Sales Price - up 31%
Quarter-Over-Quarter Median Sales Price - up 8.9%
Brooklyn New Development Sales Inventory - down 98.86% from last quarter
Neighborhood with the highest inventory - Brooklyn Heights (38% of all Brooklyn)
Total New Development Sales Volume - down 76% to $83 Million from $146 Million in 4Q12
Largest Quarterly Up-Swing: Carroll Gardens
PPSF $601/SF from $512/SF
Largest Quarterly Down-Swing: Prospect Heights
PPSF $747/SF from $1049/SF
Sales Price $675K from $755K
Highest New Development Sale:
Brooklyn Heights-360 Furman Street-1115 – $2,902,012
Highest New Development Sale PPSF:
Brooklyn Heights-360 Furman Street-1754 – $1,754/SF
Continuing the negative trend from the previous quarter, total volume of new development sales in the Brooklyn market decreased from $146 million to $83 million. In addition, a total of 88 transactions closed during the current quarter, as compared with 175 during the previous quarter. Low inventory continues to influence the market, especially in boroughs such as Bay Ridge, Fort Greene, Gowanus and Kensington where no new development sales occurred.
According to the US Census Bureau, and as mentioned by the Bloomberg Administration, “more people are moving into NYC than are moving out for the first time since 1950”. Furthermore, “the largest percentage change occurred in Brooklyn, where the population grew by 2.4%”, representing a total of 60,900 people. In addition, the availability of low interest rates, strong rental market, and inexpensive land prices as compared to Manhattan, over 70% of all new developments in NYC are scheduled to enter the Brooklyn market. Going forward, MNS will continue to monitor and analyze the new development pipeline as many of these projects will hit the market in the upcoming months.
As more willing buyers were competing for scarcer inventory, median PPSF prices rose 8.0%, from $684 ppsf during the past quarter to $739 during the current quarter. Correspondingly, median sale prices rose by 8.9% from $645,000 during the previous quarter to $702,669 during 1Q13. On a yearly basis, both median price per square foot and median sales prices have experienced remarkable growth. Going back to 1Q12, median PPSF rates have increased from $637 to current levels of $739, representing a 16% gain. Median sales prices have risen from $538,000 during 1Q12 and closed at $702,669 during the end of 1Q13, representing a 31% gain
Although not a significant total number of new development sales reported, Clinton Hill had a majority of units trading over the $600K price range - considerably higher than the $505,000 median sales price during 4Q12. As a result, the overall median sales price increased by 46.5%.
Downtown Brooklyn was able to generate a median sales price increase of 21% since the previous quarter. More specifically, the BellTel Lofts at 365 Bridge Street closed the quarter with total new development sales just under $8 million, representing 8.6% of all sponsor sales throughout Brooklyn. Although the average unit size was estimated at 1,291 square feet, the building was able to achieve an average PPSF of $659.
As noted last quarter, Prospect Heights continues its negative streak - now extending to three straight quarters.Having reached its median sales price all-time high of $1,775,000 during 2Q12, the current quarter had a median sales price of just $675,000. Having reached a record $1,049 ppsf during the previous quarter, the median PPSF decreased by 28% to settle at $747.
New development sales were common throughout Brooklyn Heights, as they dominated each unit category. In addition, Brooklyn Heights was responsible was over 38% of total development sales during the first quarter of 2013. Throughout the entire region of Brooklyn, 46% of sponsor units sold were 2-bedrooms, 26% consisted of 1-bedroom, 18% consisted of 3-bedrooms, and studios represented 10% of all new development sales.
No new development sales were reported in Bay Ridge, Fort Greene, Gowanus and Kensington.
The neighborhoods that sold the most amount of 4Q12 new development inventory per unit size:
Studios - Brooklyn Heights (55%)
One-Bedrooms - Brooklyn Heights (39%)
Two-Bedrooms - Brooklyn Heights (32%)
Three-Bedrooms - Brooklyn Heights (43%)
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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