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

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Manhattan New
Development Market Report

1st Quarter 2015

Introduction

MNS is proud to present the First Quarter 2015 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 2015 (01/01/15 – 03/31/15). All data is summarized on a median basis.

Market Snapshot

Year-Over-Year Median PPSF - down 0.3%
Quarter-Over-Quarter Median PPSF - down 12.5%

Year-Over-Year Median Sales Price - down 14.5%
Quarter-Over-Quarter Median Sales Price - down 21.1%

Manhattan New Development Sponsor Sales - up 18.8% from last quarter
Neighborhood with the Most New Dev Sales: Harlem - 25% of Manhattan New Dev Sales

Total New Development Sales Volume - up 3.8% to $771,597,078 from $743,301,625 in 4Q14

Largest Quarterly Up-Swing: East Village
PPSF $1,935/SF from $1,377/SF
Sales Price $2,275,000 from $1,950,000

Largest Quarterly Down-Swing: Murray Hill
PPSF $1,724 from $2,105
Sales Price $1,226,991 from $3,215,124

Highest New Development Sale PPSF:
30 West 63 St – Apt# 31STU - $ 11,250 PPSF

Highest New Development Sale:
157 West 57 ST – Apt# 86 – $ 47,366,989

Market summary:

Although both the volume and quantity of new development sponsor sales in Manhattan increased this quarter, the median price and price per square foot of sponsor sales in the borough fell. The total number of sponsor sales increased 16.86% this quarter, up to 310 sponsor sales from 261 sales in 4Q2014. The total volume of new development sales increased 3.81% in the first quarter, from $743,301,625 last quarter up to $771,597,078 in 1Q2015.
The median price per square foot for all new development condominium sales fell 12.5% this quarter, from $1,746 in 4Q2014 to $1,527 in 1Q2015. The median sales price also declined substantially, falling 21.13% from $1,807,393 to $1,425,550. For Manhattan sponsor sales excluding Harlem, the median price per square foot was $1,745 and the median sales price was $1,907,064
The neighborhoods of Harlem, Murray Hill, Upper East Side, TriBeCa and Financial District recorded the greatest number of sponsor sales, and accounted for nearly three-fourths of all sales in the borough. Unlike in the previous quarter, every neighborhood in the report recorded sponsor sales activity.

Market up-swings:

East Village recorded the greatest increase in price per square foot of any neighborhood in the study. The median price per square foot increased 40.5% in the first quarter, from $1,377 to $1,935. The median sales price also increased 16.7%, from $1,950,000 to $2,275,000. This increase was caused in part by an inventory of only three units, and a small yet high end building being bought to market.

Market down-swings:

The Murray Hill neighborhood experienced the greatest decrease in price per square foot this quarter. The median price per square foot fell 18.1%, from $2,105 to $1,724. The median sales price fell 61.8%, from $3,215,124 to $1,226,991. This is the result of a luxury conversion toward the pricier eastern boundary of the neighborhood coming off the market, and an influx of sales from a larger, less expensive new development.

Inventory Analysis:

The neighborhood with the greatest number of new development sponsor unit was Harlem, which recorded 26% of total borough sales. The number of sponsor sales here increased over 300%, from 18 units in 4Q14 to 79 units in 1Q15. This was due to the large number of sales closing place at 23 West 116th Street. The greatest drop in sponsor sale activity occurred in Chelsea. Three bedroom units accounted for the greatest percentage of new development sales at 43%. Studio, one and two bedroom units accounted for 14%, 24% and 19% of this quarter’s new development sales, respectively.

Tracking: Neighborhoods where the majority of each unit type was sold in 4Q14

Studios - Murray Hill (44%)
One Bedrooms - Murray Hill (37%)
Two Bedrooms - Harlem (47%)
1,500 + SF - TriBeCa (20%)

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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