MNS Real Impact Real Estate

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: