MNS Real Impact Real Estate

Introduction

MNS is proud to present the Second 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 second quarter of 2018 (4/01/18 – 6/30/18). 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 14.7%, from 272 sales during 1Q18 to 312 during 2Q18. In that same span, total sales volume increased by 34.0%, from $1,102,119,581 to $1,477,353,428. The median price per square foot increased 3.4% quarter-over- quarter, from $2,016 to $2,086. Median sales price increased by 5.7%, from $2,850,000 to $3,013,705. Year-over-year, medial price per square foot is down 2.3% from $2,135 during 2Q17 to $2,086 during 2Q18. Median sales price is down 17.9% year-over-year, from $3,668,755 during 2Q17 to $3,013,705 during 2Q18.
This past quarter, the Upper East Side had the highest number of sponsor sales in all tracked Manhattan neighborhoods, with 16.7% of total sales, which translates to 52 out of 312 total sales. The next highest number of sales occurred within the Upper West Side, which represented 14.4% of total sales, or 45 out of 312 sales.
This past quarter, the sponsor sale with the highest price paid per square foot was at 443 Greenwich Street, where the unit PHA sold for $43,787,805, or $6,054.73 per square foot. The sponsor sale with the highest sales price paid was at 503 West 24 th Street, where the penthouse unit sold for $59,058,500, or $5,826.03 per square foot.

Market up-swings:

The largest quarterly upswing was observed in the Financial District, where the median price per square foot increased by 54.9%, from $1,612 to $2,497. Additionally, the median sales price in the Financial District increased by 118.1%, from $1,800,000 to $3,925,000.This increase was largely the result of a reduced amount of sponsor sale closings this quarter, relative to last quarter.

Market down-swings:

The largest quarterly downswing was observed in Murray Hill, where the median price per square fell by 43.9%, from $2,245 to $1,259. Additionally, the median sales price in Murray Hill fell by 81.7%, from $5,857,438 to $1,074,500.This large down swing is attributable to an increase in activity amongst sponsor sales, particularly in the sale of 1 bedroom apartments this quarter.

Market Trends:

Out of the 312 total sponsor units sold in Manhattan during 2Q18, 1% or 3 were studios, 29% or 89 were one-bedrooms, 33% or 104 were two-bedrooms, and 37% or 116 were three-bedrooms or larger.

THE NEIGHBORHOODS THAT SOLD THE MOST AMOUNT OF 2Q18 NEW DEVELOPMENT INVENTORY PER UNIT SIZE:

Studios - UWS, UES, Midtown West (33.0%)
One Bedrooms - Gramercy Park (25.8%)
Two Bedrooms - Upper East Side (22.1%)
1,500 + SF - Upper West Side (20.7%)