Manhattan New
Development Market Report

2018 4th Quarter

Introduction

MNS is proud to present the Fourth Quarter 2018 edition of our New Development Market Report.

New Development Sales data, defined as “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 fourth quarter of 2018 (10/01/18 – 12/31/18). All data summarized is on a median basis.

Market summary:

Quarter-over-quarter, the total number of sponsor sales in Manhattan increased by 12.5%, from 248 during 3Q18 to 279 this quarter. In that same span, total sales volume increased by 55.2%, from $1,143,004,110 to $1,773,966,451. The median price per square foot decreased by 1.0%, from $2,082 during 3Q18 to $2,061 this quarter. Median sales price increased by 5.1%, from $2,637,268 to $2,771,175 this quarter. Year-over-year, median price per square foot is up 7.6% from $1,916 during 4Q17 to $2,061 during 4Q18. Median sales price is down 4.8% year-over-year, from $2,911,005 during 4Q17 to $2,771,175 during 4Q18.
This past quarter, Murray Hill had the highest number of sponsor sales in all tracked Manhattan neighborhoods, with 17.6% of all sales, which translates to 49 out of 279 total sales. The next highest number of sales occurred within TriBeCa, which represented 15.05% of total sales, or 42 out of 279 sales.
This past quarter, the honor of highest price paid for a sponsor unit along with highest price paid per square foot for a sponsor unit belong to the same unit. At 520 Park Avenue, unit DPH60 was sold for $73,800,000. At 9,138 square feet, that works out to $8,076 paid per square foot.

Market up-swings:

The largest quarterly upswing was observed in the Upper East Side, where the median price per square foot increased by 13.2%, from $2,095 to $2,371. Simultaneously, the median sales price in the Upper East Side increased 86.5% from $3,911,500 to $7,295,000. The majority of this increase can be attributed to a number of higher-than-average priced closings from 520 Park Avenue.

Market down-swings:

The largest quarterly downswing was observed in the Financial District, where the median price per square foot fell by 29.8%, from $2,211 to $1,552. Additionally, the median sales price in the Financial District fell by 59.7%, from $3,475,000 to $1,400,000.

Market Trends:

Out of 279 total sponsor units sold in Manhattan during 4Q18, 9% or 25 were studios, 28% or 77 were one-bedrooms, 28% or 79 were two-bedrooms, and the remaining 35% or 98 units were three- bedrooms or larger.

THE NEIGHBORHOODS THAT SOLD THE MOST AMOUNT OF 4Q18 NEW DEVELOPMENT INVENTORY PER UNIT SIZE:

Studios - Murray Hill (32.0%)
One Bedrooms - Murray Hill (36.4%)
Two Bedrooms - Lower East Side (19.9%)
Three- Bedrooms+ - TriBeCa (30.6%)

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 are separated into studios, one-bedrooms, two-bedrooms and three-bedrooms+. Square footages are reported in accordance with the building’s filed condo declaration. Typically in Manhattan, studios are under 600 square feet, one-bedrooms range from 600-800 square feet, two-bedrooms from 800-1,300 square feet and three-bedrooms+ in excess of 1,450 square feet.

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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