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

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Manhattan New
Development Market Report

2nd Quarter 2016

Introduction

MNS is proud to present the Second 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 Second Quarter of 2016 (01/04/16 – 06/30/16). All data summarized is on a median basis.

Market Snapshot

Year-Over-Year Median PPSF - up 11.5%
Quarter-Over-Quarter Median PPSF - up 7.1%

Year-Over-Year Median Sales Price - up 51.1%
Quarter-Over-Quarter Median Sales Price - up 7.88%

Manhattan New Development Sponsor Sales - down 41.77% from last quarter
Neighborhood with the Most New Dev Sales: Upper East Side - Upper East Side - 20.24% of Manhattan New Dev Sales

Total New Development Sales Volume - down 38% to $ 2,346,165,660 from $1,446,121,710 in 2Q16

Largest Quarterly Up-Swing: Financial District
PPSF $1,675/SF from $2,319/SF
Sales Price $2,123,815 from $3,961,927

Largest Quarterly Down-Swing: Midtown East
PPSF $2,298 from $1,958
Sales Price $5,185,105 from $2,977,836

Highest New Development Sale PPSF:
155 West 11th Street 4A - $ 6,661 PPSF

Highest New Development Sale:
33 East 74th Street TH – $42,766,500

Market summary:

Manhattan saw a 41.77% decrease in the number of sponsor sales this quarter, from 577 units in 1Q16 to 336 units in 2Q16. In line with this decline, total sales volume too decreased at a rate of 38.36% from $2,346,165,660 in 1Q16 to $1,446,121,710 in this quarter. Despite these decreases, the median sales price grew by 7.9% from $2,731,210 in 1Q16 to $2,946,517, as the Median Price per square foot increased by 7.1% from $1,953 to $2,092.
The following neighborhoods experienced the largest quantities of sponsor units sold in second quarter of 2016; Upper East Side (20.24%), Greenwich Village (14.88%) and Harlem (10.42%). Like the previous quarter, the sponsor sale with the highest price was observed in the Upper East Side, where 33 East 74th Street Unit TH sold for $42,766,500. The highest price per square foot was seen in Greenwich Village at 155 W 11th St Unit 4A sold for $6,661.20 per square foot.
This quarter we saw an almost-even split in number of sales across One-,Two- and Three-Bedroom+ units, while Studio units made up only 1% of the sales.

Market up-swings:

The highest quarterly market up-swing was seen in the Financial District where the median sale price per square foot increased by 38.4%, from $1,675psf to $2,320psf and median sales price increased by 86.5%, from $2,123,815 to $3,961,928, as we saw numerous higher priced closings at 56 Leonard St and 5 Franklin Place during the quarter.

Market down-swings:

From being last quarter’s largest market up-swing, Midtown East this quarter saw the largest downswing, with the median price per square foot decreasing by 14.8% and median price by 42.6%, from $2,298psf ($5,185,105) to $1,958psf ($2,977,836). This was the result of this quarter’s sales coming solely from 301 E 50th st and 305 E 51st st, as opposed to a combination which included 432 Park Ave.

Market Trends:

This quarter, just over 65% of the sponsor sales came from the Upper East Side, Greenwich Village, Harlem, Chelsea and the Financial District. The UES consisted largely of sales from 200 E 94th St; Greenwich Village from the West Village Residences at 160 W 12th and 151 W 11th St; Harlem from 159 W 126th St, 225 E 111th St and 305 W 150th St; Chelsea from 245 W 14th St; and in the Financial District, from 56 Leonard St.

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

Studios -Upper East Side (66.67%)
One Bedrooms - Upper East Side (26.21%)
Two Bedrooms - FiDi (15.52%)
Three Bedroom+ + SF - Upper East Side (19.30%)

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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