Brooklyn New
Development Market Report

2019 1ST Quarter

Introduction

MNS is proud to present the First Quarter 2019 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 2019 (1/01/19 – 3/31/19). All data is summarized on a median basis.

Market summary:

Quarter-over-quarter, the total sales volume of Brooklyn sponsor units decreased by 24.0%, from $241,142,324 during 4Q18 to $183,154,467 this past quarter. The total number of Brooklyn sponsor sales decreased by 8.6%, from 175 sales during 4Q18 to 160 total sales during 1Q19. Quarter-over-quarter, the median price per square foot decreased by 5.9%, from $1,151.15 during 4Q18 to $1,083.65 during this past quarter. Median sales price also experienced a quarter-overquarter drop, falling by 17.5%, from $1,100,000 during 4Q18 to $907,000 during 1Q19. Year-over-year, the median price per square foot is down 18.6%, while the median sales price is down 19.6%.

This past quarter, the highest price paid per for a Brooklyn sponsor unit was as 200 Water Street, where unit PHA sold for $5,088,559. At 2,835 square feet, the buyer ended up paying $1,794.91 per square foot, making this purchase simultaneously the highest price paid for a sponsor unit and the highest price paid per square foot for a sponsor unit in Brooklyn during 1Q19.

This past quarter, the largest percentage of Brooklyn sponsor sales was in Bedford-Stuyvesant, where 27.5% of all sponsor sales occurred. This translates to 44 out of the 160 total sponsor unit sales that took place in Brooklyn during 1Q19.

Market up-swings:

The largest quarterly up-swing occurred in Fort Greene, where the median price per square foot increased by 50.4%, from $882 to $1327. Additionally, the median sales price in Fort Greene increased by 37.9%, from $1,123,842. This price swing is the direct result of a low number of sponsor sale closings quarter-over-quarter in this area, which can lead to large price swings.

Market down-swings:

The largest down-swing this quarter occurred in Bushwick, where the median price per square foot decreased by 19.1%, from $966 to $781. Additionally, the median sales price in Bushwick decreased by 16.2%, from $716,479 to $600,259.

Market Trends:

During the first quarter of 2019, one studio sponsor unit was sold, representing 0.63% of all sponsor unit sales in Brooklyn. One-bedroom sponsor units represented 41.88% of all sponsor unit sales during in Brooklyn during 1Q19, or 67 out of 160 total sales. Two-bedroom sponsor units represented 43.13% of all Brooklyn sponsor unit sales, or 69 out of 160 total sales. Three-bedroom or larger sponsor units comprised the remaining 14.38% of Brooklyn sponsor sales that occurred during 1Q19, or 23 out 160 total sales.

Neighborhoods where the majority of each unit type was sold in 1Q19:

Studios - Greenpoint (100%)
One-Bedrooms - Bed-Stuy (45%)
Two-Bedrooms - Bed-Stuy (20%)
Three Bedroom+ - Williamsburg (22%)

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 are separated into studios, one-bedrooms, two-bedrooms and three-bedrooms+. Square footages are reported in accordance with the building’s filed condo declaration. Typically, studios are under 550 square feet, one-bedrooms range from 500-750 square feet, two-bedrooms from 800-1,000 square feet and three-bedrooms+ from 950 square feet to in excess of 1,500 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: 718.222.0211

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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