MNS Real Impact Real Estate

Introduction

MNS is proud to present the Fourth Quarter 2014 edition of our New Development Market

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 fourth Quarter of 2014 (10/01/14 – 12/31/14). All data summarized is on a median basis.

Market Snapshot

Year-Over-Year Median PPSF - up 18.6%
Quarter-Over-Quarter Median PPSF - up 6.1%

Year-Over-Year Median Sales Price - down 1.7%
Quarter-Over-Quarter Median Sales Price - up 11.2%

Manhattan New Development Sponsor Sales - up 5.2% from last quarter
Neighborhood with the Most New Dev Sales: Chelsea - 22.2% of Manhattan New Dev Sales

Total New Development Sales Volume - down 15.9% to $743,301,625 from $884,186,077 in 3Q14

Largest Quarterly Up-Swing: Midtown West
PPSF $3,930/SF from $2,769/SF
Sales Price $7,942,350 from $2,999,419

Largest Quarterly Down-Swing: Upper East Side
PPSF $1,799from $2,381
Sales Price $3,920,262 from $3,533,327

Highest New Development Sale PPSF:
80 Columbus Circle – Apt# NT74A - $ 7,460 PPSF

Highest New Development Sale PPSF:
212 West 18 ST – Apt# PH2 – $ 40,730,000

Market summary:

The volume of sponsor sales of New Development condominiums decreased 15.93% since last quarter. Median Price per Square Foot increased a total of 6.1% from $1,645 to $1,746 since 3Q14. Similarly, Median Sales Pricing rose 11.22% across the entire borough from $1,625,109 to $1,807,393. Excluding Harlem Sales data, the Median Price per Square Foot was $1,785 and the median Sales Price was $1,900,000.
The total amount of units sold increased 5.24% from 248 sponsor units to 261 sponsor units in all of Manhattan compared to 3Q14. Total sales volume fell down 15.93%, from $884,186,077 last quarter to $743,301,625 this quarter.
The Upper East Side, Upper West Side, Chelsea and Gramercy Park markets had the highest number of sales as these neighborhoods continue to see the greatest amount of New Development condominium activity in Manhattan. The Lower East Side and Midtown East had no sponsor sales at all in this quarter. Gramercy Park led inventory numbers with 40 units closing at 160 East 22ND Street.

Market up-swings:

Midtown’s 22 Central Park South led the largest upswing this quarter, with Apartment #7 being the only apartment to close in the area, compared to a sample of 16 last quarter. This led the quarterly price per square foot increase of 41.9% from $2,769 to $3,930, and price increase from $2,999,419 to $7,942,350.

Market down-swings:

With the amount of closings at the Jefferson on 211 E 13th street falling from 24 to 4 this quarter, coupled with a condo conversion of the 4-floor walk-up at 327 Bowery, the average East Village price per square foot fell from $1,661 to $1,377 per square foot. In terms of pricing levels, the Upper West side saw the largest down-swing this quarter from $2,100,000 to $1,405,185 led by a 26% decrease in the number of sponsor sales.

Inventory Analysis:

The highest number of New Development Sponsor unit sales took place in Chelsea at 22% of total borough sales, increasing from 20 units sold in the last quarter to 58 units this quarter. This was due to an influx of units that closed at 151 West 21 Street and 508 West 24th Street. The Upper East Side saw total sales drop 27 units since last quarter. The greatest number of sales among the unit categories were seen in two bedroom units in both Chelsea and Gramercy Park at 23 units sold in each neighborhood.

Tracking: Neighborhoods where the majority of each unit type was sold in 4Q14

Studios - FiDi (33%)
One Bedrooms - Chelsea (22%)
Two Bedrooms - Chelsea & Gramercy Park (25%)
1,500 + SF - Upper East Side (29%)