1st Quarter 2014
Development Market Report
MNS is proud to present the First Quarter 2014 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 2014 (01/01/13 – 03/31/13). All data summarized is on a median basis.
Year-Over-Year Median PPSF - up 33.4%
Quarter-Over-Quarter Median PPSF - up 4.1%
Year-Over-Year Median Sales Price - up 39.8%
Quarter-Over-Quarter Median Sales Price - up 9.3%
Manhattan New Development Sponsor Sales - down 11.5% from last quarter
Neighborhood with the Most New Dev Sales: Upper East Side - 21% of Manhattan New Dev Sales
Total New Development Sales Volume - down 17.4% to $763.6 Million from $923.9 Million in 1q14
Largest Quarterly Up-Swing: Financial District
PPSF $1,336/SF from $1,083/SF
Sales Price $1,257,538 from $1,075,000
Largest Quarterly Down-Swing: TriBeCa
PPSF $1,183 from $1,724
Sales Price $967,337 from $3,054,750
Highest New Development Sale:
212 West 18th St. – Apt# PH5 - $14,225,000 million
Highest New Development Sale PPSF:
25 Columbus Circle – Apt# 60A – $5,662 PPSF
The first quarter of 2014 saw a decrease of -9.3% in sales of New Development Condominiums from the previous quarter but an
increase of 4.1% in Median Price per Square Foot. Median pricing dropped from $1,837,941 to $1,667,556 while Median Price per
Square Foot rose from $1,472 to $1,533. Not including Harlem, Median Price per Square Foot was $1,659.79 and Median Pricing
The number of sales from the previous quarter dropped -11.45% from 332 to 294 and the overall dollar volume for Sponsor sales dropped -17.35% from $923,875,249 to $763,563,970. This can be attributed to low absorption rates in the borough due to a lack of condominium inventory in 1q14 which was caused by high absorption rates in 3Q13.
Harlem, Upper West Side, and Upper East Side continue to have the highest number of sales while FiDi made a comeback in the number of Sponsor sales since last quarter. Pricing per Square Foot as well as Sales Pricing for FiDi also increased due to a higher demand and inventory of upper market One-Bedroom units compared to last quarter.
The Upper East Side again experienced the most sales of any Manhattan neighborhood in 1Q14. A large majority of these transactions (65% of all UES sales) were Three-Bedroom units in condos from 60th-80th Street - Median Price per Square Foot increased 7.3% compared to 1q14 from $1,838 to $1,973. New Developments in FiDi accounted for 12% of total sales and performed very well compared to last quarter with a majority of One-Bedroom unit sales. Median Price per Square Foot increased 23.4% from $1,083 to $1,336 and Median Pricing jumped 17% from $1,075,000 to $1,257,538 compared to 1q14.
Gramercy Park, which accounted for 5% of all new Sponsor sales in the borough, experienced drops in Median Price per Square Foot of -17.8% and Median Sales Price of -29.3%, continuing a negative trend from last quarter. This is due to a lack of high price-point marketing units in 18 Gramercy Park South which were sold in the last two quarters. The downturn is also partially due to a decrease in available units in 323 Park Avenue South which accounted for 71.4% of all Two-Bedroom units sold in Gramercy Park in 1q14.
Following a surge of marketing units in 1q14, the number of New Development Sponsor sales in Midtown East dropped from 11% of total borough sales to 2% in 1Q14. The forward looking market of Manhattan New Development Sponsor sales will continue to see higher offering prices due to the lack of inventory in most neighborhoods. The number of available units in Harlem can be expected to remain relatively stable due to a large number of new developments currently in progress.
In tracking the neighborhoods that sold the most amount of 1Q13 new development inventory per unit size:
Studios - Harlem (37%)
One Bedrooms - Midtown West (24%)
Two Bedrooms - Upper West Side (17%)
Three Bedrooms - Upper East Side (33%)
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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