NEW DEV MARKET STABILIZES AFTER GROWTH
APRIL 2024 NEW DEV CONDO MARKET UPDATE
May 1, 2024
- Citywide, deal volume retreated by 13% as upward momentum stalled after a four-month climb
- Dollar volume fell by 13% compared to March, but increased by 18% from the same period last year
- The luxury market continued to show strength with a 7% month-over-month increase in deal volume
- April's 246 reported contracts mark a return to pre-pandemic norms, closely aligning with the April average of 238 contracts from 2015 to 2019
After four months of gains, deal volume finally dipped in April. This was not unexpected, as we observed the momentum slowing in March. The number of contracts slipped by 13% from 282 in March to 246 in April. Deal count in every borough saw a decrease, with Queens seeing the most significant month-over-month drop of 29%. Total dollar volume decreased by 13% from $794M to $689M. The median price per square foot (PPSF) ticked up 3% from $1,587 to $1,638, and the median price increased by 20% from $1.5M to $1.8M.
Although upward momentum has stalled compared to recent months, April's deal volume still shows a 3% increase over the pre-pandemic April average from 2015 to 2019. April's performance shows that the new dev market continues to stabilize after several years of volatility.
Of the 246 deals citywide, 129 (-4%) were in Manhattan, 88 (-18%) were in Brooklyn, and 29 (-29%) were signed in Queens.
“After several months of upward momentum, the new development market has stabilized and converged with pre-pandemic norms. With limited new inventory entering the market and elevated mortgage rates, demand may be reaching an equilibrium.”
Kael Goodman - Co-Founder and CEO of Marketproof, Inc.
Luxury
Unlike the broader new dev market, the luxury segment continues to show strength. Deal volume ticked up by 7%, reaching a ten-month peak of 46 contracts. The total dollar volume dipped by 16% from $427M to $356M as fewer ultra-luxury units went into contract. The median price was unchanged at $6.4M, and the median PPSF increased by 3% to $2,708.
50 West 66th Street led in deal volume with six contracts over $4M. The Lincoln Square tower found buyers for 31 of 124 residences since sales launched a little over a year ago. Douglas Elliman and Corcoran Group jointly handle sales and marketing.
Of the 46 luxury deals this month, 44 were in Manhattan, and two were signed in Brooklyn.
Manhattan
Manhattan led all boroughs in deal volume and saw the least monthly retraction. Contracts fell 4% from 134 to 129 month-over-month. Total dollar volume decreased by 12% from $597M to $524M. The median price dipped slightly by 2% from $2.7M to $2.6M. The median PPSF rose by 6% from $2,001 to $2,125.
Top Performers by Contract Volume
Claremont Hall
Claremont Hall, a 197-unit condo tower in Morningside Heights by L+M Development Partners and Lendlease, reported eight contracts for 1—to 3-bedroom units priced between $1.375 and $4.8M. Since sales launched in 2022, 44% of the units have sold. Corcoran Sunshine Marketing Group Estate handles marketing and sales.
The Treadwell
The Treadwell, a 66-unit boutique developed by Zeckendorf and Dart Interests in Lenox Hill, reported six contracts for 1—and 3-bedroom units ranging from $1.715M to $3.975M. Brown Harris Stevens Development Marketing has sold 23% of the units since launching sales four months ago.
Manhattan Top 3s
Top Contracts
One High Line - Unit WPH34B asking $25.6M
4-bed asking $4,999 PSFThe Giorgio Armani Residences - Unit 7 asking $21.5M
5-bed asking $4,746 PSF125 Perry Street - Unit 3W asking $19.95M
4-bed asking $5,473 PSF
Top Closings
220 Central Park South - Unit 43B sold for $33M
3-bed closing at $10,845 PSFOne High Line - Unit W31A sold for $17.5M
4-bed closing at $4,570 PSFSelene - Unit 53A sold for $8.9M
3-bed closing at $2,624 PSF
Brooklyn
Deal volume slipped 18% to 88 contracts from 107 last month. The total dollar volume decreased by 18% from $164M to $135M. The median price rose 7% from $1.3M to $1.4M. The median PPSF dipped slightly by 4%, going from $1,394 to $1,336.
Top Performers by Contract Volume
11 Hoyt Street
11 Hoyt Street led Brooklyn with five deals on 2- and 3-bedroom units, last asking between $2.04M and $5.5M. Since launching sales in 2018, the project has sold 96% of its 479 units. Corcoran Sunshine Marketing Group handles sales.
Elysium
Elysium in Prospect Lefferts Gardens also reported five signed contracts on 1- and 2-bedroom residences ranging from $795K to $1.15M. Since sales started two months ago, the 12-unit boutique has found buyers for 67% of the units. Reavis Development Marketing handles marketing and sales.
Brooklyn Top 3s
Top Contracts
11 Hoyt Street - Unit PHA asking $5.5M
3-bed asking $2,017 PSFQuay Tower - Unit 22B asking $4.85M
3-bed asking $2,358 PSFBrooklyn Point - Unit 55E asking $4.3M
3-bed asking $2,178 PSF
Top Closings
Quay Tower - Unit PH3C sold for $5.35M
3-bed closing at $2,095 PSF78 Meserole Avenue - Unit 3 sold for $3.5M
3-bed closing at $1,801 PSF110 First Place - Unit 2 sold for $3.3M
3-bed closing at $1,928 PSF
Queens
Deal volume decreased by 29%, from 41 to 29 signed contracts, the first decrease in five months. The total dollar volume dropped 9%, from $34M to $30M. The median price jumped by 44%, from $705K to $1M, and the median PPSF rose 27%, from $1,100 to $1,400.
Top Performers by Contract Volume
Lucent 33
Lucent 33, in Long Island City, led all boroughs with nine contracts on 1- and 2-bed units asking between $797K and $1.177M. On sale since October of last year, the project has found buyers for 24 of the 64 units. Nest Seekers International handles sales.
Skyline Tower
Skyline Tower, in Long Island City, reported six contracts on studio- to 2-bed units asking between $730K and $1.904M. On sale since May 2019, the developers have sold 690 of 800 units. Helen Lee's team at Modern Spaces is selling the remaining units.
Queens Top 3s
Top Contracts
Skyline Tower - Unit 5809 asking $1.9M
2-bed asking $1,953 PSFThe Greene - Unit PH4B asking $1.75M
2-bed asking $1,823 PSFEden Condominium - Unit N6A asking $1.37M
1-bed asking $1,205 PSF
Top Closings
Tangram House West - Unit PH2C sold for $2.3M
3-bed closing at $1,375 PSFSkyline Tower - Unit 5910 sold for $1.8M
2-bed closing at $1,846 PSFGrand Two At Sky View Parc - Unit PH3M sold for $1.7M
3-bed closing at $885 PSF
Report Methodology
- *2015-2019, used as a normalized benchmark for comparison as it is the most recent period unaffected by the COVID pandemic
- 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 5/1/2024
Access inventory, past sales for over 1 million new development and resale properties, and pipeline of future projects.