MNS Real Impact Real Estate

Introduction

MNS is proud to present the Second Quarter 2017 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 2017 (4/01/17 – 6/30/17). All data summarized is on a median basis.

Market Snapshot

Year-Over-Year Median PPSF - up 2.1%
Quarter-Over-Quarter Median PPSF - up 8.0%

Year-Over-Year Median Sales Price - up 24.5%
Quarter-Over-Quarter Median Sales Price - up 18.3%

Manhattan New Development Sponsor Sales - down 25.2% from last quarter
Neighborhood with the Most New Dev Sales: Financial District 29.04% of all Manhattan

Total New Development Sales Volume - 24.5% to $1.446 Million from $1.916 Million in 1Q17

Largest Quarterly Up-Swing: Midtown East
PPSF $2,462/SF from $2,000/SF
Sales Price $4,686,950 from $2,625,000

Largest Quarterly Down-Swing: Chelsea
PPSF $1,751 from $2,338
Sales Price $3,717,988 from $4,450,000

Highest New Development Sale PPSF:
Upper East Side, 20 East End Avenue 12B - $5,260

Highest New Development Sale:
TriBeCa, 30 Park Place PH78A - $30,000,000 /PSF

Market summary:

Sales quantities decreased this quarter in Manhattan by 25.2%, from 405 units during the first quarter of 2017 to 303 units during the second quarter of 2017. The volume of sales decreased by 24.5%, from $1,915,524,411 to $1,446,238,325. This decrease in volume occurred after two quarterly increases in volume. From the third quarter to the fourth quarter of 2016, volume increased by 6.9%, from $1,451,019,068 to $1,551,641,676. Last quarter, volume increased by 23.5%, from $1,551,641,676 to $1,915,524,411. Now, volume is far closer to what it was in the third quarter of 2016. Over the last quarter, the median price per square foot increased by 8.0% and the median sales price increased by 18.3%. Over the last year, the median price per square foot increased by 2.1% and the median sales price increased by 24.5%. Last quarter, the Financial District had the largest quantity of sponsor units sold, at 26% of total inventory. This quarter, the Financial District again had the largest number of sponsor units sold, at 29% of total sales. This quarter, 88 of the 303 total sales occurred in the Financial District. Gramercy Park/Flatiron had the second highest quantity of sales this quarter, with 46 sales or 15.2% of sales. Both the Upper East Side and Midtown East had 31 sales, or 10.2% of sales.
The sponsor sale with the highest price per square foot this quarter was unit 12B at 20 East End Avenue on the Upper East Side. The unit sold for $14,784,990, or $5,260 per square foot. The highest sale price this quarter was in TriBeCa, at 30 Park Place, where a penthouse sold for $30,000,000, or $4,896 per square foot. It is worth noting that the highest price sale last quarter was also in TriBeCa, at 443 Greenwich Street, where a penthouse sold for $43,991,455, or $4,938 per square foot.

Market up-swings:

The largest quarterly upswing occurred in Midtown East, where the median price per square foot increased from $2,000 to $2,462, or 23.1%. Additionally, the median sales price increased by 78.6%, from $2,625,000 to $4,686,950. Most of the activity in Midtown East this quarter was from 2 and 3 bedroom units at 252 East 57th Street Built in 2016, this building contains 95 units over 65 stories.

Market down-swings:

The largest downswing this quarter occurred in Chelsea, where the median price per square foot decreased from $2,338 to $1,751, or 25.1%. Additionally, the median sales price here decreased by 16.4%, from $4,450,000 to $3,717,988. This is due to small amount of closings this quarter.

Market Trends:

For the third quarter in a row, three plus bedroom units were the majority of units sold. Of the 303 units sold throughout the borough of Manhattan this quarter, 46% of them were at least three bedrooms. Last quarter, 35% of total units sold were this size, and the quarter before, 37% of units sold were this size. During the second quarter of 2017, only 3% of units sold were studios, 25% of units sold were one bedroom units, and 27% of units sold were two bedroom units.

Market Trends: Neighborhoods where the majority of each unit type was sold in 2Q17: