YTD PERFORMANCE OUTPACES PRE-PANDEMIC AVERAGE DESPITE APRIL DIP
APRIL 2023 NEW DEV CONDO MARKET UPDATE
May 3, 2023
- Compared to the pre-pandemic average, 8%** more deals were signed citywide during January-April of 2023
- Demand for $4M+ luxury residences continues to underperform its pre-pandemic volume benchmarks
- 300 West 30 Street in Chelsea and Long Island City’s The Greene led the market with 16 and 49 contracts during April, although the latter’s tally certainly reflects previously unreported deals
- The relaunch of One High Line, previously known as “XI,” notched the largest deal of the month, a penthouse atop the West Tower asking $28M
Buyers were more active this April compared to an average April from 2015-2019, with deal volume up from 239 to 281 contracts. However, this month’s tally reflects a significant but unknown number of previously unreported contracts in Queens, so we cannot know for certain. Year-to-date, NYC is ahead of its pre-pandemic benchmark by 8%**. However, it's worth noting that all metrics were lower compared to March, which is typically a peak month. Contract volume dropped by 19%, median price decreased by 21% to $1.225M, median PPSF was lower by 7% to $1,581, and total dollar volume decreased from $763M to $600M.
“After a very active March, demand contracted in April, but that’s to be expected. Now that the first four months of the year are in the books, where do we stand YTD in terms of contract volume? 8%** above the pre-pandemic 2015-2019 average* for that same time period.”
Kael Goodman - Co-Founder and CEO of Marketproof, Inc.
It appears that there was a decrease in demand for units priced at $4M and above this month, with a 23% drop compared to the average April from 2015-2019. The “catch-up” reporting in Queens does not affect these numbers. Additionally, deal volume was lower by 38% compared to March, with only 28 contracts signed. Total dollar volume also decreased from $290M to $255M. On a positive note, the median price and median PPSF for units sold were higher, at $7.6M (+39%) and $2,888 (+15%), respectively.
Interestingly, all the $255 million worth of luxury deals were signed in Manhattan, except for one contract in Brooklyn. Extell's Central Park Tower was the top performer in terms of deal count and total dollar volume, with 3 contracts listed for more than $38 million. This development, which is the world's tallest residential building, is a single contract away from selling 50% of its 178 units. Next in line is the relaunch of One High Line, previously known as "XI," with 2 contracts totaling over $35 million. This brings the total to 6 contracts in 8 months for this dual tower project offering 235 units with a combined price of over $2 billion.
There were 118 signed contracts in Manhattan, which is 18% less deal volume than during the same period from 2015-2019, before the pandemic. When compared to March of this year, the volume of contracts and total dollar volume were both lower, with deals down 34% from 180 and the total down 22% to $418M. The median price per square foot was flat at $2,092, but the median price itself rose 6% to $2.16M.
Top Performers by Contract Volume
300 West 30 Street
300 West 30th Street recorded 16 contracts in April, a mix of studio, 1- and 2-beds ranging from $995k to $2.38M. Only 8 of 69 units remain, and Aleksey Gavrilov and Joseph Grosso of Corcoran are expected to sell out the building before June if sales continue at their current pace.
One Manhattan Square
One Manhattan Square posted 6 contracts, a mix of 1-, 2- and 3-bed units priced from $1.39M to $2.75M. Extell, the developer, and Corcoran Sunshine Marketing Group have found buyers for 490 of the building’s 814 residences.
Manhattan Top 3s
One High Line #West Tower PH34A asking $28.0M
5-bed asking $4,877 PSF
111 West 57th Street #17S asking $15.8M
4-bed asking $3,303 PSF
53W53 #57B asking $14.1M
3-bed asking $4,320 PSF
Central Park Tower #97W sold for $16.3M
3-bed closing at $5,311 PSF
Central Park Tower #92W sold for $14.9M
3-bed closing at $4,853 PSF
Westly #PHA sold for $13.5M
5-bed closing at $3,831 PSF
In Brooklyn, there were 96 new dev contracts signed in April, which is a 20% increase compared to the average April numbers between 2015-2019. However, when comparing month-over-month metrics, all indicators showed a decrease. Deal volume was down from 143 contracts, total dollar volume decreased from $205M to $109M, median price fell from $1.1M to $797k, and the median PPSF dropped from $1,251 to $1,144.
Top Performers by Contract Volume
111 Montgomery recorded 5 contracts in April on studio, 1- and 2-beds ranging in asking price from $499k to $1.12M. After 4 years on the market, Tamara Abir, Carrie McCue, and Jacqueline Mumm-Gill of Compass have sold 139 of 162 units and will sell out the building in six months if sales continue at their current pace.
Brooklyn Point recorded 4 contracts in April on 1- and 2-bed units ranging in price from $1,216,785 to $1.995M. On sale for 5 years, the building is now 73% sold, with 140 units remaining. At the current pace of sales, that is 21 months of inventory. Serhant partnered with Extell Development in November 2020 to assist with sales and marketing.
Brooklyn Top 3s
11 Hoyt Street #PHB asking $6.1M
3-bed asking $2,324 PSF
Olympia Dumbo #25C asking $3.5M
2-bed asking $2,320 PSF
Post House #9F asking $3.2M
3-bed asking $1,880 PSF
450 Warren Street #5C sold for $3.4M
3-bed closing at $1,703 PSF
510 Driggs Avenue #3D sold for $3.0M
3-bed closing at $1,705 PSF
Post House #8A sold for $2.8M
3-bed closing at $1,963 PSF
In April, The Greene in Long Island City reported a significant number of contracts signed in prior months, which makes it challenging to compare the metrics to both March and the pre-pandemic period. Therefore, we'll only present the April numbers, which show that 67 contracts were signed at a median price of $990k, a median PPSF of $1,506, and a total dollar volume of $73M.
Top Performers by Contract Volume
The Greene recorded 49 contracts during March, the majority of which were previously unreported in prior months. The deals were on studio, 1-, 2- and 3-bed units ranging from $575k to $2.235M. The project launched less than 6 months ago, and Michael Bethoney, Nayi Shen, Patrick Gorny, and Marina Kote of Nest Seekers have already sold 83 of the building’s 129 residences. At the current pace of sales, the building should be sold out by August.
Skyline Tower recorded 4 contracts in April on studio, 1- and 2-bedroom residences priced from $761,880 to $1,888,283. In 4 years, the developers have placed 581 units in contract at a very impressive average annual rate of 145 units. Helen Lee's team at Modern Spaces and Michael Bethoney's team at Nest Seekers International are selling the remaining units.
Queens Top 3s
The Greene #PH5A asking $2.0M
1-bed asking $1,621 PSF
The Greene #PH4A asking $1.9M
2-bed asking $1,557 PSF
Skyline Tower #5509 asking $1.9M
2-bed asking $1,937 PSF
The Greene #PH2C sold at $2.4M
3-bed closing at $1,765 PSF
The Greene #16D sold at $1.6M
2-bed closing at $1,787 PSF
The Greene #9C sold at $1.4M
2-bed closing at $1,468 PSF
- *Used as a normalized benchmark for comparison as it is the most recent period unaffected by the COVID pandemic.
- **Contracts reported by The Greene were excluded from the % comparison metric as the majority were previously signed and unreported until this month.
- Report is based on reported contracts and may not represent all contracts signed
- Prices are based on the last asking price before a unit was put into contract
- New development contracts are sponsor stage (sponsor controlled) projects that are eligible to sell units
- Data as of 5/1/2023
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