1st Quarter 2014
Development Market Report
MNS is proud to present the First Quarter 2014 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 2014 (01/01/14 – 03/31/14). All data summarized is on a median basis.
Year-Over-Year Median PPSF - up 3.7%
Quarter-Over-Quarter Median PPSF - down 2.4%
Year-Over-Year Median Sales Price - up 10.1%
Quarter-Over-Quarter Median Sales Price - down 0.7%
Brooklyn New Development Sales Inventory - up 14.5% from 1Q14
Neighborhood with the Most New Dev Sales - Bay Ridge (20% of all Brooklyn)
Total New Development Sales Volume - up 29.4% to $64.4 Million from $49.7 Million in 1Q14
Largest Quarterly Up-Swing: Boerum/Cobble Hill
PPSF $1,020/SF from $629/SF
Sales Price $952,807 from $480,103
Largest Quarterly Down-Swing: Williamsburg
PPSF $829/SF from $1,012/SF
Sales Price $1,411,142 from $1,680,112
Highest New Development Sale:
371 Sixth Ave. Apt.1 Park Slope – $ 2,106,759
Highest New Development Sale PPSF:
371 Sixth Ave. Apt.4 Park Slope – $1,178/SF
The total number of New Development Sponsor sales in Brooklyn jumped up 29% compared to 1Q14. The following neighborhoods did not account for any New Development sales during this time: DUMBO, Gowanus, Kensington, and Prospect- Lefferts Gardens. The jump in the number of sponsor sales in Brooklyn can be attributed to an anticipated increase in demand for New Development condominiums in the spring season. Median pricing throughout Brooklyn remained the same from the previous quarter and Median Price per Square Foot dipped only 2.4% compared to 1Q14.
Sponsor sales in Bay Ridge accounted for 19.72% of all New Development Sponsor sales in Brooklyn during 1Q14. Bay Ridge has not seen Sponsor sales for the past four quarters since 4Q12. Since then, the Median Price per Square Foot has climbed 7.4% to $558 from $517. Median pricing increased 14.5% to $655,498 from $560,037. Although Prospect Heights only accounted for 8.45% of total new development sales reported, the Median Price per Square Foot increased 29.4% from $694 to $897 and the Median Sales Price shot up 189.1% from $427,503 to $1,235,959. This sharp increase was due to two luxury units being sold at above $1.5 million and one penthouse unit being sold at $1.9 million. As the Brooklyn waterfront becomes saturated with more New Development properties, long-term inland demand for these product types as well as price points can be expected to steadily increase.
In contrast to last quarter, Greenpoint’s Median Price per Square Foot dropped 4.5% from $814 to $778 and its Median Sales Price dropped 9.4% from $618,198 to $560,037. This can be qualified as normalization from the sharp 20% jump in Price per Square Foot and 7% jump in Sales Price since last quarter.
Two-Bedroom units and Three-Bedroom units represented 34% and 41% of all sales in Brooklyn during 1Q14, respectively. New Development Condominiums in Williamsburg should continue to see high growth margins throughout 2014, where over 450 units are in the pipeline.
The neighborhoods that sold the most amount of 1Q14 new development inventory per unit size:
Studios - Prospect Heights (50%)
One-Bedrooms - Greenpoint (36%)
Two-Bedrooms - Bay Ridge (33%)
1,500 + SF - Bay Ridge (21%)
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.
TABLE OF CONTENTS
- Market Snaphot
- Neighborhood Price Trends
- The Report Explained
Rent vs. Buy Calculator
Determine if it's better to rent or to buy by filling in a few numbers and percentages.
Check out samples of leases and riders you will find throughout the Manhattan rental market.
A list of maps and transit options available in New York City and beyond.
Print out our moving checklist so you can be sure to have all your ducks in a row before you move.
Know the pertinent steps to buying an apartment in Manhattan. The guidance you receive can make or break your deal. Know before you go.
We know real estate terms and abbreviations can get confusing, so we’ve put together a list of terms and definitions for you.