MNS Real Impact Real Estate

Introduction

MNS is proud to present the First Quarter 2019 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 first quarter of 2019 (1/01/19 – 3/31/19). All data summarized is on a median basis.

Market Snapshot

Market summary:

Quarter-over-quarter, the total number of sponsor sales in Manhattan decreased by 8.2%, from 279 during 4Q18 to 256 during this part quarter. In that same span, total sales volume fell by 15.2%, from $1,773,966,451 to $1,503,511,929. The median price per square foot increased by 2.4%, from $2,061 during 4Q18 to $2,110 this quarter. The median sales price also increased quarter-over-quarter, from $2,771,175 to $2,982,399, or 7.6%. Year-over-year, median price per square foot is up 4.6%, from $2,016 during 1Q18 to $2,110 during 1Q19. Median price is also up 4.6% year-over-year, from $2,850,000 during 1Q18 to $2,982,399 during 1Q19.
This past quarter, Gramercy Park had the highest number of sponsor sales in all tracked Manhattan neighborhoods, with 21.5% of all sales, which translates to 55 out of 256 total sales. The next highest number of sales occurred within the Lower East Side, where 38 out 256 sales, or 14.84%, took place.
This past quarter, the highest price paid per square and highest sales price paid for a sponsor unit belong to unit 50 at 220 Central Park South. The buyer, Ken Griffin, shelled out an astonishing $239,958,219 or $10,419.83 per square foot for the 23,029 square foot unit.

Market up-swings:

The largest quarterly upswing was observed in Midtown West, where the median per square foot increased by 34.5%, from $2,739 to $3,684. Additionally, the median sales price in Midtown West increased by 33.4%, from $3,444,79 to $4,596,629.

Market down-swings:

The largest quarterly downswing was observed in TriBeCa, where the median price per square foot fell by 22.4%, from $2,968 to $2,302. Additionally, the median sales price in TriBeCa fell by 28.2%, from $7,381,295 to $5,300,000.

Market Trends:

Out of 256 total sponsor units sold in Manhattan during 1Q19, 9% or 22 were studios, 29% or 73 were one-bedrooms, 27% or 69 were two-bedrooms, and the remaining 36% or 92 units were three-bedrooms or larger.

The neighborhoods that sold the most amount of 1Q19 new development inventory per unit size:

Studios - Gramercy Park (31.8%)
One Bedrooms - Gramercy Park (38.4%)
Two Bedrooms - Lower East Side (17.4%)
Three- Bedrooms+ - Upper West side (19.6%)