Manhattan New Development Market Report | MNS is Real Impact Real Estate

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Manhattan New
Development Market Report

1st Quarter 2016

Introduction

MNS is proud to present the First Quarter 2016 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 2016 (01/01/16 – 03/31/16). All data summarized is on a median basis.

Market Snapshot

Year-Over-Year Median PPSF - up 28%
Quarter-Over-Quarter Median PPSF - up 6%

Year-Over-Year Median Sales Price - up 92%
Quarter-Over-Quarter Median Sales Price - up 21%

Manhattan New Development Sponsor Sales - up 6.07% from last quarter
Neighborhood with the Most New Dev Sales: Upper East Side - 23.2% of Manhattan New Dev Sales

Total New Development Sales Volume - up 20.5% to $ 2,346,165,660 from $1,946,380,110 in 4Q15

Largest Quarterly Up-Swing: Midtown East
PPSF $2,298/SF from $1,865/SF
Sales Price $5,185,105 from $2,880,932

Largest Quarterly Down-Swing: Harlem
PPSF $793 from $1,143
Sales Price $503,500 from $661,863

Highest New Development Sale PPSF:
432 Park Ave 67B - $ 6,623 PPSF

Highest New Development Sale:
33 East 74th Street PH3 – $31,000,000

Market summary:

Manhattan saw an increase of 6.07% in the number of sponsor sales this quarter, from 544 units in 4Q15 to 577 units in 1Q16. Total sales volume increased again this quarter, rising by 20.54% - from $1,946,380,110 in 4Q15 to $2,346,165,660 in 1Q16 in this quarter. Median Sales price grew at 20.71% from $2,262,510 in 4Q15 to $2,731,210 in 1Q16 as the Median Price per square foot increased by 6.14% from $1,840 in 4Q15 to $1,953 in 1Q16.
The following neighborhoods experienced the largest quantities of sponsor units sold in first quarter of 2016; Upper East Side, Midtown West and Greenwich Village. The sponsor sale with the highest price was observed in the Upper East Side, where 33 East 74th Street Unit PH3 sold for $31,000,000. The highest price per square foot was seen in Midtown East at 432 Park Avenue 67B which sold for $6,623.40 per square foot.
Similar to the last few quarters, 3 bedroom units and larger sized apartments accounted for the majority of sponsor sales, at 59%; as Studios made up 3%, One Bedrooms 19% and Two bedrooms 19%, indicating a high demand for larger sized apartments.

Market up-swings:

The highest quarterly market up-swing was seen in Midtown East where both the price per square foot and sales prices increased by more than any other Manhattan Neighborhood. The median price per square foot increased by 23.2% from $1,865 to $2,298 psf as the sales priced increased by 80% from $2,880,932 to $5,185,105. This was largely the result of various closings at the newly opened luxury condo building at 432 Park Avenue.

Market down-swings:

Similar to the previous quarter, most Manhattan neighborhoods experienced noticeable numbers of sponsor sales, with the Upper East Side, Financial District, Midtown West and Greenwich Village accounting for 46.31% of the 577 total sold , namely from the following buildings: 200 East 94th Street in Upper East Side; 135 West 52nd Street and 301 West 53rd Street in Midtown West; 5 Franklin Place in Financial District/ Civic Center, 150 Charles Street and 209 Sullivan Street in Greenwich Village.

Market Trends: The neighborhoods that sold the most amount of 1Q16 new development inventory per unit size:

Studios -Harlem (35.3%)
One Bedrooms - Upper East Side (27.7%)
Two Bedrooms - Upper East Side (35.8%)
1,500 + SF - Greenwich Village (18%)

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 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 Report™ 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.

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/manhattan_new_dev_report).

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