MNS Real Impact Real Estate

Introduction

MNS is proud to present the Fourth Quarter 2018 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 fourth quarter of 2018 (10/01/18 – 12/31/18). All data summarized is on a median basis.

Market Snapshot

Market summary:

Quarter-over-quarter, the total number of sponsor sales in Manhattan increased by 12.5%, from 248 during 3Q18 to 279 this quarter. In that same span, total sales volume increased by 55.2%, from $1,143,004,110 to $1,773,966,451. The median price per square foot decreased by 1.0%, from $2,082 during 3Q18 to $2,061 this quarter. Median sales price increased by 5.1%, from $2,637,268 to $2,771,175 this quarter. Year-over-year, median price per square foot is up 7.6% from $1,916 during 4Q17 to $2,061 during 4Q18. Median sales price is down 4.8% year-over-year, from $2,911,005 during 4Q17 to $2,771,175 during 4Q18.
This past quarter, Murray Hill had the highest number of sponsor sales in all tracked Manhattan neighborhoods, with 17.6% of all sales, which translates to 49 out of 279 total sales. The next highest number of sales occurred within TriBeCa, which represented 15.05% of total sales, or 42 out of 279 sales.
This past quarter, the honor of highest price paid for a sponsor unit along with highest price paid per square foot for a sponsor unit belong to the same unit. At 520 Park Avenue, unit DPH60 was sold for $73,800,000. At 9,138 square feet, that works out to $8,076 paid per square foot.

Market up-swings:

The largest quarterly upswing was observed in the Upper East Side, where the median price per square foot increased by 13.2%, from $2,095 to $2,371. Simultaneously, the median sales price in the Upper East Side increased 86.5% from $3,911,500 to $7,295,000. The majority of this increase can be attributed to a number of higher-than-average priced closings from 520 Park Avenue.

Market down-swings:

The largest quarterly downswing was observed in the Financial District, where the median price per square foot fell by 29.8%, from $2,211 to $1,552. Additionally, the median sales price in the Financial District fell by 59.7%, from $3,475,000 to $1,400,000.

Market Trends:

Out of 279 total sponsor units sold in Manhattan during 4Q18, 9% or 25 were studios, 28% or 77 were one-bedrooms, 28% or 79 were two-bedrooms, and the remaining 35% or 98 units were three- bedrooms or larger.

THE NEIGHBORHOODS THAT SOLD THE MOST AMOUNT OF 4Q18 NEW DEVELOPMENT INVENTORY PER UNIT SIZE:

Studios - Murray Hill (32.0%)
One Bedrooms - Murray Hill (36.4%)
Two Bedrooms - Lower East Side (19.9%)
Three- Bedrooms+ - TriBeCa (30.6%)