MNS Real Impact Real Estate

Introduction

MNS is proud to present the Second Quarter 2019 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 2019 (4/01/19 – 6/30/19). All data is summarized on a median basis.

Market Snapshot

Market summary:

Quarter-over-quarter, the total sales volume of Queens sponsor units increased by 147.68%, from $21,285,144 during 1Q19 to $52,718,765 this past quarter. The total number of sales increased by 204.8%, from 21 sales during 1Q19 to 64 this past quarter. Quarter-over-quarter, the median price per square foot for a Queens sponsor unit decreased by 11.0%, from $1,169.06 to $1,040.60. Similarly, the median price paid for a Queens sponsor unit fell by 25.5%, from $1,087,186 during 1Q19 to $809,607 this past quarter. Year-over-year, median price per square foot is down 8.9%, while the median price is down 5.1% in that same span.

This past quarter, the highest price paid for a Queens sponsor unit was at 131-03 40th Road, where unit PH2M was sold for $2,242,034 or $1,161.68 per square foot. The highest price paid per square foot for a Queens sponsor unit this past quarter occurred at 526 4th Avenue, where unit 2A was sold for $885,000 or $1,367.85 per square foot.

This past quarter, the largest percentage of Queens sponsor sales was in Long Island City where 31.3% of all sponsor sales occurred. This translates to 20 out of the 64 total sponsor unit sales that took place in Queens during 2Q19.

Market up-swings:

The largest quarterly up-swing occurred in Forest Hills, where the median price per square foot increased by 44.0%, from $640 to $921. Additionally, the median sales price in Forest Hills increased by 120.5%, from $430,000 to $948,195. These movements can be attributed to closings which have commenced at The Sunrise Forest Hills at 109-19 72nd Road.

Market down-swings:

The largest down-swing this quarter occurred in Flushing, where the median price per square foot decreased by 13.4%, from $1,189 to $1,030. Additionally, the median sales price in Flushing decreased by 12.4%, from $1,049,295 to $919,394.

Market Trends:

During the second quarter of 2019, three studio sponsor units were sold, representing 4.69% of all sponsor unit sales in Queens. One-bedroom sponsor units represented 54.69% of all sponsor unit sales in Queens during 2Q19, or 35 out of 64 total sales. Two-bedroom sponsor units represented 39.06% of all Queens sponsor unit sales, or 25 out of 64 total sales. Three-bedroom or larger sponsor units comprised the remaining 1.56% of Queens sponsor sales that occurred during 2Q19, or 1 out of 64 total sales.

Neighborhoods where the majority of each unit type was sold in 2Q19:

Studios - Long Island City (67%)
One Bedrooms - Long Island City (34%)
Two Bedrooms - Flushing (36%)
Three- Bedrooms+ - Flushing (100%)