MNS Real Impact Real Estate

Introduction

MNS is proud to present the First 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 first quarter of 2018 (1/01/18 – 3/31/18). All data summarized is on a median basis.

Market Snapshot

Year-Over-Year Median PPSF - up 2.0%
Quarter-Over-Quarter Median PPSF - up 5.3%

Year-Over-Year Median Sales Price - down 8.1%
Quarter-Over-Quarter Median Sales Price - down 2.1%

Manhattan New Development Sponsor Sales - down 27.5% from 4Q17
Neighborhood with the Most New Dev Sales: Upper West Side 28% of all Manhattan

Total New Development Sales Volume - down 36.1% to $1.102 Million from $1.725 Million in 4Q17

Largest Quarterly Up-Swing: Midtown West
PPSF $2,501/SF from $1,775/SF
Sales Price $3,181,600 from $2,163,781

Largest Quarterly Down-Swing: Harlem
PPSF $981 from $1,317
Sales Price $1,225,000 from $1,608,835

Highest New Development Sale PPSF:
Midtown East, 432 Park Ave. 94B - $8,152/SF

Highest New Development Sale:
SoHo, 146-150 Wooster Street PH - $32,584,000

Market summary:

Quarter-over-quarter, the total number of sponsor sales in Manhattan decreased by 27.5%, from 375 sales during 4Q17 to 272 sales during 1Q18. In that same span, total sales volume fell by 36.1%, from $1,724,988,145 to $1,102,119,581. Median price per square foot increased by 5.3%, from $1,916 to $2,016. Median sales price decreased by 2.1%, from $2,911,005 to $2,850,000. Year-over-year, median price per square foot increased by 2.0%, from $1,977 during 1Q17 to $2,016 during 1Q18. Median price, on the other hand, decreased by 8.1%, from $3,100,000 during 1Q17 to $2,850,000 during 1Q18.
For the second quarter in a row, the Upper West Side had the highest number of sponsor sales in all tracked Manhattan neighborhoods with 22.1% of total sales, which translates to 60 out of 272 total sales. The next highest number of sales occurred within the East Village, which represented 14.71% of all sales, or 40 out of 272 total sales.
This past quarter, the sponsor sale with the highest price paid per square foot was at 432 Park Avenue in Midtown East, where unit 94B sold for $32,422,270 or $8,152 per square foot. The sponsor sale with the highest sales price paid this past quarter was at 146-150 Wooster Street, where the penthouse unit sold for $32,584,000 or $4,813 per square foot.

Market up-swings:

The largest quarterly upswing was observed in Midtown West, where the median price per square foot increased by 40.9%, from $1,775 to $2,501. Additionally, the median sales price in Midtown West increased by 47.0%, from $2,163,781 to $3,181,600.

Market down-swings:

The largest quarterly downswing was observed in Harlem, where the median price per square fell by 25.5%, from $1,317 to $981. Additionally, the median sales price in Harlem fell by 23.9%, from $1,608,835 to $1,225,000.

Market Trends:

Out of the 272 total sponsor units sold in Manhattan during 1Q18, 3% or 8 were studios, 26% or 71 were one-bedrooms, 39% or 105 were two-bedrooms, and 32% or 88 were three-bedrooms or larger.

Neighborhoods where the majority of each unit type was sold in 1Q18: