2017 1st Quarter
Development Market Report
MNS is proud to present the First Quarter 2017 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 2017 (1/1/17 – 3/31/17). All data summarized is on a median basis.
Year-Over-Year Median PPSF - up 1.2%
Quarter-Over-Quarter Median PPSF - down 3.2%
Year-Over-Year Median Sales Price - up 13.5%
Quarter-Over-Quarter Median Sales Price - down 2.4%
Manhattan New Development Sponsor Sales - up 17.4% from last quarter
Neighborhood with the Most New Dev Sales: Financial District 25.93% of all Manhattan
Total New Development Sales Volume - 23.5% to $1.916 Million from $1.551 Million in 4Q16
Largest Quarterly Up-Swing: Greenwich Village
PPSF $3,342/SF from $2,916 /SF
Sales Price $7,073,675 from $6,797,506
Largest Quarterly Down-Swing: Upper East Side
PPSF $1,647 from $1,968
Sales Price $1,951,842 from $3,300,000
Highest New Development Sale PPSF:
Chelsea, 551 West 21st St PH19 - $33,605,000
Highest New Development Sale:
TriBeCa, 443 Greenwich St PHH - $4,938 /PSF
Sales quantities increased this quarter in Manhattan by 17.4%, from 345 units during the last quarter of 2016 to 405 units during the first quarter of 2017. The volume of sales increased this quarter as it did last quarter. For reference, volume increased by 6.9% last quarter, from $1,451,019,068 to $1,551,641,676. This quarter, volume increased even more- by 23.5%, from $1,551,641,676 to $1,915,524,411. Over the last quarter, the median sales price decreased by 2.4% and the median price per square foot decreased by 3.2%. Over the last year, the median sales price increased by 13.5% and the median price per square foot increased by 1.2%. The following neighborhoods experienced the largest quantities of sponsor units sold; Financial District (26%), Upper East Side (16%), Tribeca (15%), and Harlem (8%). The sponsor sale with the highest price per square foot this quarter was a penthouse at 551 West 21st Street in Chelsea, which sold for $33,605,000, at $5,449 per square foot. It is worth noting that last quarter, the highest sale price was in Chelsea, and both the highest sale price and the highest price per square foot were in Chelsea the quarter before that. The highest sale price this quarter was in TriBeCa, at 443 Greenwich Street. A penthouse in this building sold for $43,991,455, at $4,938 a square foot.
The largest upswing this quarter occured in Greenwich Village, where the median price per square foot increased by 14.6%, from $2,916 to $3,342. Additionally, the median sales price in this neighborhood increased by 4.1%, from $6,797,506 to $7,073,675. Most of the new activity in Greenwich Village occured in the two bedroom sector and three plus bedroom sectors, mainly in 155 West 11th Street and 275 West 10th Street. The Shephard at 275 West 10th Street, for instance, contains 38 units and was converted to condos in late 2016.
The largest downswing in the market this quarter occured in the Upper East Side, where the median price per square foot decreased by 16.3%, from $1,968 to $1,647. Additionally, the median sales price dropped by 40.9%, from $3,300,000 to $1,951,842. This is due mainly to changes in inventory. This quarter, there were 64 total sponsor units on the market, with high levels of activity at 389 East 89th Street and 200 East 62nd Street. Additionally, there were lower priced units, including two studios that were below $1,000,000. Last quarter, there were far fewer units on the market (only 17), and no lower priced units.
Last quarter, three plus bedroom units dominated the market at 37% of total units. This quarter, three beds were again the majority at 143 of 405 units, or 35% of total units. Two bedroom units composed 34%, one bedroom units composed 30%, and studios composed only 4 units or 1% (down from 3% last quarter, of total units in Manhattan this quarter.
Market Trends: Neighborhoods where the majority of each unit type was sold in 1Q17:Studios -Harlem -Upper East Side (50/50%)
One Bedrooms - Financial District(23.33%)
Two Bedrooms - Financial District (27.54%)
1,500 + SF - Financial District (27.27%)
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.
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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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