MNS Real Impact Real Estate

Introduction

MNS is proud to present the Second 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 Second Quarter of 2014 (04/01/14 – 06/30/14). All data summarized is on a median basis.

Market Snapshot

Year-Over-Year Median PPSF - up 14.4%
Quarter-Over-Quarter Median PPSF - down 8.7%

Year-Over-Year Median Sales Price - up 19.9%
Quarter-Over-Quarter Median Sales Price - down 7.0%

Manhattan New Development Sponsor Sales - up 13.3% from last quarter
Neighborhood with the Most New Dev Sales: Harlem - 17% of Manhattan New Dev Sales

Total New Development Sales Volume - up 43.6% to $1.1 Billion from $763.6 Million in 1Q14

Largest Quarterly Up-Swing: Midtown West
PPSF $3,631/SF from $1,810/SF
Sales Price $6,978,513 from $1,415,000

Largest Quarterly Down-Swing: Chelsea
PPSF $1,642 from $1,927
Sales Price $2,325,000 from $3,575,213

Highest New Development Sale:
15 Central Park West – Apt# 1819B - $48,000,000 million

Highest New Development Sale PPSF:
15 Central Park West – Apt# 1819B – $8,568 PPSF

Market summary:

Sponsor sales of New Development condominiums increased 13.27% since last quarter. Median Price per Square Foot dropped a total of 8.7% from $1,533 to $1,400 since 1Q14. Similarly, Median Sales Pricing fell 7% across the entire borough from $1,667,556 to $1,550,000. Excluding Harlem sales data, the Median Price per Square Foot was $1,541 and the Median Sales Price was $1,792,500.

his quarter 333 sponsor units were sold in all of Manhattan. This is a 13.33% increase in sales compared to 1Q14, up from 294 sales across the borough. Total sales volume jumped up 43.58% from $763,563,970 from last quarter to $1,096,287,464. This market shift is a reflection of increased activity on both buy and sell sides – the second quarter generally experiences more movement in the condo market due to end-of-lease sales and new development buildings entering the market.

Harlem, Upper West Side, and Upper East Side again had the highest number of sales but were joined by Financial District, which experienced a jump in sales since last quarter. Pricing per Square Foot and Sales Pricing increased in all these neighborhoods except for FiDi, which saw drops in both categories.

Market up-swings:

Midtown West had the highest increase in Pricing per Square Foot since last quarter, increasing 100.6% from $1,810 to $3,631. One57, a new luxury condominium building located at 157 West 57th Street entered the market and sold fourteen units for prices above $3.5 million per square foot.

TriBeCa, while only accounting for 3% of total sales in Manhattan, had the highest jump in Median Sales Pricing this past quarter. This is due to a low dataset size and two particular units that sold for $10,000,000 and $8,900,000 – these two sales translated to a large shift in Median Sales Pricing because there were so few sales recorded in TriBeCa.

Market down-swings:

Chelsea had the largest negative shifts in Price per Square Foot and Sales Price this past quarter. This appears to be a normalization of the condo market in Chelsea following the three quarter increase starting in 3Q14. The following neighborhoods experienced decreases in Median Sales Pricing since last quarter: Midtown East, Murray Hill, Chelsea, Greenwich Village, and Financial District. This is likely due to a lack of high priced luxury condos that were sold in 1Q14.

Inventory Analysis:

The number of marketing New Development Sponsor unit sales in Upper East Side dropped from 21% of total borough sales to 17% in 2Q14. Upper East Side had the highest percentage of sponsor sales in 1Q14. There was a significant increase in the number of Two Bedroom units and units with three or more bedrooms sold in 2Q14. These units came from 1890 Adam Clayton Powell Boulevard and 234 West 148th Street.

Tracking: Neighborhoods where the majority of each unit type was sold in 2Q14:

Studios - Harlem (48%)
One Bedrooms - Financial District (4%)
Two Bedrooms - Harlem (32%)
1,500 + SF - Upper East Side (24%)