3Q11 Brooklyn New Development Report
Brooklyn New Development Market Report
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Table of Contents:
- Market Snaphot
- Neighborhood Price Trends
- The Report Explained
MNS is proud to present the Third Quarter 2011 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 Third Quarter of 2011 (07/01/11 - 09/30/11). All data summarized is on a median basis. This month also includes quarterly tracking graphs over a seven quarter look back (1Q10) and will continue to track the trends going forward.
Year Over Year Median PPSF - up 7%
Quarter Over Quarter Median PPSF - up 3%
Year Over Year Median Sales Price - up 6%
Quarter Over Quarter Median Sales Price - down 6%
Brooklyn New Development sales inventory - down 34% from last quarter.
Neighborhood with the most inventory - Williamsburg (30%)
Largest quarterly up-swing: Carroll Gardens
PPSF: $703/SF from $626/SF
Sales Price: $800K from $646K
Largest quarterly down-swing: Crown Heights
PPSF: $477 from $571
Sales Price: $366K from $383M
Highest New Development Sale:
OBBP 360 Furman Street #1203 - $2,643,451
In Brooklyn, 2011 has faired better than 2010, with the biggest delta in the second quarter comparisons from a median sales price in 2Q10 at $515K to 2Q11 at $630K.
Year-over-Year Brooklyn New Development Condominium sales price per foot numbers are up 6% ($594/SF this quarter versus $557/SF in 3Q10), and median sales prices are up 7% (just under $600K this quarter versus $550K in 3Q10).
Compared to last quarter 2Q11, Brooklyn New Development price per square foot median numbers are up 3% but median sales prices are down 6%.
Bay Ridge is finally entering into the market, with 8 two-bedroom closings from a new development called Pier Pointe at a median sales price of $480K, a 50% median sales price improvement from last quarter.
Selling two bedrooms at a slightly lower median price of $460K is The Waterfalls on Ocean, bringing Ditmas Park back into the new development market. Not quite the $565K median sales price of two bedrooms at MNS’Vista in 3Q10, but it is a 7% boost in median sales prices from 2Q11.
Last quarter’s median prices in Gowanus was $660K and this quarter jumped 17% to $775K. This quarter, new development sales at Third + Bond and 26 4th Street (median ppf $700/SF) caught up to its competition in neighboring Carroll Gardens and Boerum Hill (median ppf $703/SF).
In Downtown Brooklyn, without the closings from 189 Schermerhorn this quarter, the median sales price in the neighborhood actually buoyed to $587K from last quarter’s $475K median sales price. The median price per foot is still hovering around $650/SF with Oro (80% sold), Toren (75% sold), and Belltel (60% sold) selling off their remaining inventory, a combined total of 210 units.
Despite Crown Heights’ increase of Brooklyn’s new development inventory from 4% to 7%, units at 765 Park Place and The Pacific Street Lofts closed at a median ppf of $475/SF, dragging both the neighborhood down $100/SF from last quarter and sales prices down 10% since the beginning of the year.
Now that the developer auction closed out the last 6 Penthouses at One Hanson Place, Fort Greene’s $593/SF median price per foot from last quarter is at $577/SF this quarter. Rockwell Place on the border of the neighborhood, where MNS has sold 70% of the building, and a few remaining units at Clermont Greene now structures the bulk of the neighborhoods’ new development closed inventory.
The third quarter of 2011 brought 34% less sponsor sales to Brooklyn’s city registry, compared to last quarter, but the shift occurred outside of Williamsburg, which steadily holds the same 30% of all Brooklyn’s new development inventory. Of that 30%, the Edge closed 48 units at a median price of $846/SF.
A dramatic decrease in inventory occurred in Downtown Brooklyn and Greenpoint, both down 5% from the beginning of the year, and One Prospect Park in Prospect Heights had just 2 sales this quarter.
A 5% increase of new development sales was found in Park Slope this quarter from 8 closings at 136 Saint Marks Place at the north edge of the neighborhood and another 8 closings at 226 15th Street at the south edge of the neighborhood.
The Brooklyn Rental Market Report is the only report that compares fluctuation in the city’s rental data on a monthly basis. It is an essential tool for potential renters seeking transparency in the NYC apartment market and a benchmark for landlords to efficiently and fairly adjust individual property rents in Brooklyn.
The Brooklyn Rental Market Report is based on a cross–section of data from available listings and priced under $10,000, with ultra–luxury property omitted to obtain a true monthly rental average. Our data is aggregated from the MNS proprietary database and sampled from a specific mid–month point to record current rental rates offered by landlords during that particular month. It is then combined with information from the REBNY Real Estate Listings Source (RLS), OnLine Residential (OLR.com) and R.O.L.E.X. (Real Plus).
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Note: All market data is collected and compiled by MNS’ 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 “Brooklyn New Development Report” with a link back to its original location (http://www.mns.com/brooklyn_new_development_report).