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Manhattan New
Development Market Report

3rd Quarter 2014

Introduction

MNS is proud to present the Third 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 Third Quarter of 2014 (07/01/14 – 09/30/14). All data summarized is on a median basis.

Market Snapshot

Year-Over-Year Median PPSF - up 34.7%
Quarter-Over-Quarter Median PPSF - up 17.6%

Year-Over-Year Median Sales Price - up 52.2%
Quarter-Over-Quarter Median Sales Price - up 4.8%

Manhattan New Development Sponsor Sales - down 25.5% from last quarter
Neighborhood with the Most New Dev Sales: Upper East Side - 24% of Manhattan New Dev Sales

Total New Development Sales Volume - down 19.3% to $884 Million from $1.1 Billion in 2Q14

Largest Quarterly Up-Swing: Murray Hill
PPSF $1,851/SF from $1,128/SF
Sales Price $1,665,000 from $1,590,513

Largest Quarterly Down-Swing: Midtown West
PPSF $2,769 from $3,631
Sales Price $2,999,419 from $6,978,513

Highest New Development Sale:
157 West 57th St – Apt# 63A - $32,571,705

Highest New Development Sale PPSF:
15 Central Park West – Apt# 33A – $9,662 PPSF

Market summary:

Sponsor sales of New Development condominiums decreased 25.53% since last quarter. Median Price per Square Foot increased a total of 17.6% from $1,400 to $1,645 since 2Q14. Similarly, Median Sales Pricing rose 4.8% across the entire borough from $1,550,000 to $1,625,109. Excluding Harlem sales data, the Median Price per Square Foot was $1,738 and the Median Sales Price was $1,877,100.

This quarter 248 sponsor units were sold in all of Manhattan. This is a 25.33% decrease in sales compared to 2Q14, down from 333 sales across the borough. Total sales volume fell down 19.35%, from $1,096,287,464 last quarter to $884,186,077 this quarter.

The Upper East Side, the Upper West Side and Harlem again had the highest number of sales as these neighborhoods continue to see the greatest amount of New Development condominium activity in Manhattan. Contrary to this the Lower East Side, TriBeCa, and Battery Park City had no sponsor sales at all this quarter. This mimics last month’s activity when these neighborhoods had minimal sales inventory. The most dramatic shift in activity this quarter took place in the Financial District as sales plummeted by 38 units after experiencing a spike last quarter.

Market up-swings:

Murray Hill had the highest increase in Pricing per Square Foot percentage since last quarter, increasing 64.1% from $1,128 to $1,851. Alongside this, Sales Price percentage jumped 4.7%, going from $1,590,513 to $1,665,000. This rise was result of both a low sample size for this neighborhood and also higher priced luxury units being sold this quarter. These transactions include sales of units at Twenty9th Park Madison at 39 East 29th Street and Sky House at 11 East 29th Street.

Market down-swings:

Midtown West had the largest negative shift in Price per Square Foot percentage this quarter falling 23.8% from $3,631 to $2,769. Sales Price percentage decreased 57% from $6,978,513 to $2,999,419. This appears to be a normalization of the condo market in Midtown West following the four quarter increase starting in 3Q13. The following neighborhoods experienced decreases in Median Sales Pricing since last quarter: Harlem, Midtown West, Chelsea, and Greenwich Village.

Inventory Analysis:

The highest number of New Development Sponsor unit sales took place in the Upper East Side at 24% of total borough sales, a 7% increase from last quarter. This was due to an influx of units that closed at 200 East 79th Street. In 2Q14 this distinction belonged to Harlem, however total unit sales dropped to 28 units in the neighborhood this quarter, approximately half of last quarter. All unit types, with the exception of studios, saw a decrease in inventory compared to last month. The greatest number of sales among the unit categories was seen in Three Bedroom Upper East Side units at 45 units sold.

Tracking: Neighborhoods where the majority of each unit type was sold in 3Q14

Studios - Harlem & Chelsea (24%)
One Bedrooms - Chelsea & Financial District (16%)
Two Bedrooms - Upper West Side, Upper East Side & Gramercy Park (17%)
1,500 + SF - Upper East Side (40%)

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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