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

Manhattan New
Development Market Report

3rd Quarter 2016

Introduction

MNS is proud to present the Third 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 Third Quarter of 2016 (07/1/16 - 09/30/16). All data summarized is on a median basis.

Market Snapshot

Year-Over-Year Median PPSF - up 23.5%
Quarter-Over-Quarter Median PPSF - down 1.5%

Year-Over-Year Median Sales Price - up 87.2%
Quarter-Over-Quarter Median Sales Price - up 20.0%

Manhattan New Development Sponsor Sales - down 6.25% from last quarter
Neighborhood with the Most New Dev Sales: Financial District 21.27% of all Manhattan

Total New Development Sales Volume - up 0.3% to $1,451 Million from $1,446 Million in 2Q16

Largest Quarterly Up-Swing: Chelsea
PPSF $2,104/SF from $2,631/SF
Sales Price $2,527,806 from $8,000,000

Largest Quarterly Down-Swing: Murray Hill
PPSF $2,041 from $1,380
Sales Price $1,316,543 from $1,300,000

Highest New Development Sale PPSF:
160 West 12th St PHNO - $33,641,696

Highest New Development Sale:
160 West 12th St PHNO – $6,608/PSF

Market summary:

Manhattan saw another decrease in the number of sponsor sales quarter – decreasing by 6.25% from 336 sales in 3Q16 to 315 in 3Q16. The volume of sales, however, remained consistent with last quarter, increasing by 0.34% from $1,446,121,710 in 3Q16 to $1,451,019,068 in 3Q16. The median sales price, however, increased by 20% from $2,946,517 in 3Q16 to $3,535,691 in 3Q16, while the median price per square foot decreased by 1.5% from $2,092 to $2,060 psf. These movements can be attributed to 40% of this quarter’s sales coming from apartments that are 3-bedrooms or larger.
The following neighborhoods experienced the largest quantities of sponsor units sold; Financial District (21%), Gramercy Park/Flatiron (13%) Upper East Side (12%) and Harlem (10%)
The sponsor sale with both the highest price and price per square foot was seen in Greenwich Village, where #PHNO at 160 W 12th street, sold with a price tag of $33,641,696, or $6,608 per square foot.

Market up-swings:

The highest quarterly market up-swing for both median price and median price per square foot was seen in Chelsea. Sales price increased from a median of $2,527,806 to $8,000,000 and price per square foot from $2,104 to $2,631. These increases were the result of 11 x three- bedroom and larger sales from 551 West 21st Street and 560 West 24th street, where the lowest priced sale was $7million and the largest priced sale was just shy of $17million.

Market down-swings:

The largest downswing in price per square foot was seen in Murray Hill, which decreased from $2,041 to $1,380, as the number of sponsor sales more than doubled since last quarter. Gramercy Park / Flatiron saw the largest decrease in median price, from $5,412,163 to $2,716,131, largely due to an increase in the overall number of sales this quarter, of which 45% were from One-Bedroom sales.

Market Trends:

This quarter, Three-Bedroom and larger sized units made of most of the inventory, at 40%. Two-bedrooms accounted for 35%, One-Bedrooms at 24% and Studios at 1%. The Financial District saw the most number of overall sales, at 67 sponsor sales, which equated to 21% of the overall quantity, with many sales across 56 Leonard St, 30 Park Place and 15 William Street.

Market Trends: The neighborhoods that sold the most amount of 3Q16 new development inventory per unit size::

Studios -Upper East Side (66.67%)
One Bedrooms - Gramercy Park/Flatiron (23.68%)
Two Bedrooms - Financial District (26.13%)
1,500 + SF - Financial District (22.4%)

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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