NYC NEW DEVELOPMENTS MADE 260 SALES IN AUGUST, SURPASSING PRE-PANDEMIC NORMS
August 2022 NEW DEV CONDO MARKET UPDATE
September 1, 2022
- Contract volume increased 35% between July and August
- The market performed in line with 2019 norms (pre-pandemic)
- August top-performers by contract volume were largely new-to-market developments, launching within the past eight months
- 520 Park Avenue notched the city’s priciest closings at $27M, Aman New York has the second highest at 18M while 35 Hudson Yards came in third with $13.5M
- The Cortland had the month’s most expensive contracts with a 3-bed asking $17.5M and a 5-bed asking $16.6M
- One Wall Street was the most searched project on Marketproof New Dev & Condo
New development contracts increased 35% in August 2022. Sponsors reported 259 deals city-wide, up from 192 in July, which puts the market in sync with pre-pandemic norms. For comparison: August 2019 saw 238 deals.
While median unit price dipped 12% from July to $1,450,000, asking price per square foot held steady at $1,661 (+0.6%). Compared to 2021, these figures reflect a decline, but against 2019 show significant increases – up 14% and 19% respectively.
“The new development market is doing a lot better than people realize. August’s contract volume performed above pre-pandemic levels, which essentially puts us at a healthy normal. At the same time, we’re seeing fewer condo resale transactions in the current economic climate, and that could continue driving buyers to sponsor units.”
Kael Goodman - Co-Founder and CEO of Marketproof, Inc.
Manhattan
Developers in the boro reported 117 contracts totaling $340,584,970, reflecting an 18% increase in volume from July and 33% from the same period pre-pandemic. Monthly median prices dipped: the average unit was asking $1,880,000 (- 23%) and $1,900 PSF (- 8%).
The month’s top-performers by contract volume, with 8 deals a piece, were 208 Delancey and The Cortland. Designed by ODA’s Eran Chen, the Lower East Side condo from New Empire Real Estate is approaching 50% sold with Compass Development Marketing.
Located at 555 West 22nd Street, The Cortland is still fairly new to market, having launched in June, but developers Related Companies and Mitsui Fudosan America have already signed big ticket units, including the month’s top 2 deals. They are also seeing impressive velocity – 6.7 monthly contracts on average. Related is handling sales in-house.
One Wall Street was the month’s most searched development on Marketproof. The 565-unit historic conversion from Macklowe Properties reported another five contracts and has been averaging 3.8 deals over the past 3 months. Compass Development Marketing is handling sales with agents Kirk Rundhaug and Landis Hosterman.
Manhattan Top 3s
Top Contracts
- The Cortland #11BW asking $17.5M
3-bed asking $5,956 PPSF - The Cortland #9ABW asking $16.6M
5-bed asking $2,974 PPSF - 40 East End #PH16 asking $11.3M
4-bed asking $3,273 PPSF
Top Closings
- 520 Park Avenue #32 sold for $27M
4-bed closing at $5,834 PSF - Aman New York #17B sold for $18M
4-bed closing at $5,009 PSF - 35 Hudson Yards #8101 sold for $13.5M
4-bed closing at $3,509 PSF
Brooklyn
Sponsors reported 110 contracts in August, a 57% increase from 70 deals the previous month, and identical to the same period in 2019. Median prices were elevated from July, with units asking $1,257,500 (+28%) and $1,464 (+9%) per square foot. We also see an increase when comparing median prices from 2021, which means buyers are spending more in the boro post rate hike.
Post House in Boerum Hill stood out with 15 contracts on units ranging from $1,010,000 to $2,750,000. The 41-unit development from Sterling Town Equities launched sales in April and if this pace continues could sell out within 6 months. Compass Development Marketing is handling sales with the Tamara + Noah Team, led by brother-sister duo Tamara Abir and Noah Plener.
Habitual top-performer Brooklyn Point had the second highest volume with developer Extell reporting 10 deals in August on units asking from $1,115,000 to $3,657,195. The 482-unit Downtown Brooklyn tower has averaged 9.5 deals over the past 6 months and is 54% sold. Extell is handling sales in-house but has tapped SERHANT to market select units.
One Prospect Park West inked the boro’s top contract in August, bringing the WORKSTEAD-designed historic conversion to nearly 90% sold. Douglas Elliman Development Marketing is handling sales.
Brooklyn Top 3s
Top Contracts
- One Prospect Park West #6G asking $4.5M
4-bed asking $2,365 PPSF - Olympia Dumbo #29B asking $3.9M
2-bed asking $2,449 PPSF - Brooklyn Point #56D asking $3.7M
3-bed asking $2,510 PPSF
Top Closings
- 11 Hoyt #5C sold for $5.2M
4-bed closing at $1,735 PSF - 11 Hoyt #5PHE sold for $5M
3-bed closing at $2,051 PSF - One Clinton #29B sold for $3.8M
4-bed closing at $1,755 PSF
Queens
Sponsors reported 23 contracts, a nearly 40% increase from July. Queens was the only boro to see a decline in activity compared to 2019, which saw 36. Median prices dropped: asking price was down 13% at $737,500 and PPSF dipped 6% to $1,256.
Novo LIC was the winningest development, reporting 7 deals in August – all 1-beds asking from $700, 810 to $825,000. The 33-unit Long Island City condo launched this spring and is approaching 60% sold. Aleksey Gavrilov and Joseph Grosso of Corcoran’s Grosso Gavrilov Team are handling sales. As quoted in amNewYork, they attribute the project’s appeal to its modern and functional design.
10-64 Jackson Avenue in Hunter’s Point reported 4 contracts on 1-, 2- and 3-beds asking from $750,000 to $1,795,000. Launched in January, the curvaceous 22-unit condo from BK Developers is 45% sold. Modern Spaces is handling sales with agents Alexander Pereira and Gala Chan.
Queens Top 3s
Top Contracts
- 10-64 Jackson Ave #5A asking $1.8M
3-bed asking $1,320 PSF - The Rowan #3E asking $1.6M
2-bed asking $1,256 PSF - 19-14 21st Rd #1B asking $1.5M
3-bed asking $882 PPSF
Top Closings
- Tangram House West #PH1F sold for $1.5M
2-bed closing at $1,266 PSF - Skyline Tower #801 sold for $1.5M
2-bed closing at $1,559 PSF - Tangram House West #7A sold for $1.3M
2-bed closing at $1,168 PSF
Report Methodology
- 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 9/1/2022
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