MNS is proud to present the Third Quarter 2013 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 2013 (7/01/13 – 9/30/13). All data summarized is on a median basis.
Year-Over-Year Median PPSF - up 15%
Quarter-Over-Quarter Median PPSF - up 0.1%
Year-Over-Year Median Sales Price - up 1%
Quarter-Over-Quarter Median Sales Price - up 17.4%
Manhattan New Development Sales Inventory - down 0.67% from last quarter
Neighborhood with the Most New Dev Sales: Midtown West 20% of Manhattan New Dev. Sales
Total New Development Sales Volume - down 5.24% to $842.1 Million from $888.7 Million in 2Q13
Largest Quarterly Up-Swing: Chelsea
PPSF $1,995/SF from $1.335/SF
Sales Price $2,952,925 from $1,374,637
Largest Quarterly Down-Swing: Upper East Side
PPSF $1,172/SF from $1,375/SF
Sales Price $1,883,762 from $2,020,704
Highest New Development Sale:
Gramercy Park – Gramercy Park South, Apt. 6 – $15.1 million
Highest New Development Sale PPSF:
TriBeCa – 250 West Street, Apt. C – $4,850 PPSF
After posting a strong recovery in the 2Q13, New Development sales volume and total transactions remained stable throughout the Third Quarter. Most notably year over year PPSF levels have risen by 15%. This upward trend can be attributed to a rise in the number of Three-Bedroom units sold augmented by a steep increase in PPSF in these units from $1,134 in 3Q12 to $1712 in 3Q13. While PPSF remained fixed from the previous quarter, the median sales price dropped after increasing for three consecutive quarters.
Chelsea was the driving force behind New Development growth in Manhattan throughout 3Q13. PPSF and Median price have
undergone substantial appreciation in both a short and long term basis –specifically PPSF in Chelsea have increased by 42% over
the past two years. Also, several notably high price points in Gramercy had a significant upward effect on quarterly increases as two
Three Bedroom units sold for $13.7 Million and $15.1 Million.
Also, a notable trend throughout Manhattan is the continuing return in New Developments in Midtown West. This neighborhood offered the largest number of transactions and has undergone a 22% appreciation in terms of PPSF over the last two years.
The Upper East Side saw a 14.8% decline in PPSF relative to last quarter. With this said, overall prices have appreciated by over 20% since last year. Greenwich Village has offered solid returns in the short and medium term as quarterly PPSF has increased by 4% in 3Q13 continuing a trend which has consisted of a 30% increase in PPSF over the last twelve months.
Following a sizable increase in inventory between 1Q13 and 2Q13, the number of transactions remained stable throughout 3Q13 at 446. The Upper East Side and Midtown West contributed the highest percentage of transactions of Manhattan neighborhoods, totaling 18.6% and 19.0%, respectively. Furthermore, 90% of transactions in Chelsea consisted of One and Two Bedroom units.
In tracking the neighborhoods that sold the most amount of 3Q13 new development inventory per unit size:
Studios - Midtown West (46%)
One Bedrooms - Midtown West (22%)
Two Bedrooms - Harlem (23%)
Three Bedrooms - Upper East Side (27%)
ncluded 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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