SUMMER LOOKS TO CLOSE ON A HIGH NOTE
AUGUST 2023 NEW DEV CONDO MARKET UPDATE
September 5, 2023
- 5% increase in deal volume from July
- 26% increase in YTD deal volume versus the pre-pandemic period
- 6% decrease in median price compared to the numbers before the pandemic
- Demand for $4M+ luxury residences has been declining steadily since May
- 50 West 66th Street, which inked last month’s largest deal, added to its trophy collection with contracts on a unit priced at $23.5M and another at $22.8M
Compared to July, deal volume grew 5% to 262 contracts; the total dollar volume slid 4% to $573M; the median price decreased 6% to $1.4M, and the median PPSF fell 9% to $1,522.
Compared to the average pre-pandemic January-August period, demand is greater, but the median price is lower. Year-to-date, 2,341 contracts have been signed for units with a median price of $1.4M, compared to 1,864 contracts with a median price of $1.5M historically.
“When we use historical numbers* to gauge where we are year-to-date, we see that the NYC new construction median price is slightly lower but that demand is much higher. If this sales momentum continues, this fall we will see developers move a large amount of their existing inventory at a time when new inventory is heading lower.”
Kael Goodman - Co-Founder and CEO of Marketproof, Inc.
Luxury
Month-over-month, deal volume and the total dollar volume both decreased by 14% to 32 signed contracts and $242M, respectively. The median price and the median PPSF retreated by much less, down 4% to $5.7M and 5% to $2,486.
29 of the 32 luxury deals this month were signed in Manhattan, with the others signed in Brooklyn. For the fourth consecutive month, One High Line was the top performer in terms of deal count, with 5 contracts for nearly $47M. With Steve Gold and Deborah Kern in charge of sales, the 235-unit development is approaching 25% sold in only a year. In terms of total dollar volume, it was second to only 50 West 66th Street, which recorded 3 contracts on units with a combined price of almost $54M.
Manhattan
Month-over-month, deal volume was unchanged at 115 contracts, the total dollar volume decreased 10% to $390M, the median price fell 16% to $2.15M, and the median PPSF dropped 13% to $1,941.
11% more contracts have been signed in Manhattan YTD than the average pre-pandemic January – August period.
Top Performers by Contract Volume
Tribeca Green
Tribeca Green reported 11 contracts on studio, 1-, and 2-bedroom units priced between $705k and $1.675M. Corcoran Sunshine Marketing Group launched sales for Related in March and have already sold 109 of the rental-turned-cooperative residences.
450 Washington
450 Washington reported 10 contracts on 1-beds and a 2-bed priced between $1.175M and $3.05M. The sales office opened in October of last year and Corcoran Sunshine Marketing Group has sold 85 units within Related’s other conversion cooperative residences.
Manhattan Top 3s
Top Contracts
One High Line, West Tower, #PH32A asking $25.0M
5-bed asking $4,415 PSF50 West 66th Street #50S asking $23.5M
4-bed asking $6,484 PSF50 West 66th Street #48N asking $22.8M
4-bed asking $6,674 PSF
Top Closings
109 East 79th Street #PH20 sold for $35.0M
4-bed closing at $6,118 PSF200 East 83rd Street #34A sold for $11.3M
5-bed closing at $3,384 PSF200 East 83rd Street #33A sold for $10.7M
4-bed closing at $3,592 PSF
Brooklyn
Month-over-month, deal volume retreated slightly from 97 to 93 signed contracts, but all other metrics were higher. The total dollar volume increased 4% to $126M; the median price grew 15% to $1.05M; and the median PPSF climbed 5% to $1,274.
19% more contracts have been signed in Brooklyn YTD than the average historical January – August period.
Top Performers by Contract Volume
490 Lorimer Street
490 Lorimer Street reported 5 contracts on 1- and 2-beds ranging from $985k to $1.55M. Sales for this 9 unit project launched less than two months ago, and Anthony Robles, Aran Scott, and Nicholas Dorr-Hanss of Douglas Elliman have only 4 residences left to sell.
111 Montgomery
111 Montgomery reported 4 contracts on studio, 1-, and 2-bed units priced from $522k to $1.215M. Launched in April of 2019, Tamara Abir, Jacqueline Mumm-Gill, and Carrie McCue of Compass have found buyers for 91% of the building's 162 units.
Brooklyn Top 3s
Top Contracts
Quay Tower #20A asking $5.4M
4-bed asking $2,151 PSFOne Clinton #27B asking $4.5M
4-bed asking $1,742 PSFParlour #12A asking $4.3M
5-bed asking $1,314 PSF
Top Closings
One Clinton Street #37A sold for $8.1M
4-bed closing at $1,964 PSFOne Clinton Street #29A sold for $4.3M
4-bed closing at $1,874 PSF275 Wythe Avenue #5 sold for $3.8M
3-bed closing at $1,847 PSF
Queens
Month-over-month, the median price fell from $922k to $828k, but all other metrics were higher. Deal volume increased by 42% to 54 contracts; the total dollar volume grew by 35% to $57M; and the median PPSF rose by 3% to $1,376.
147% more contracts have been signed in Queens YTD than the average pre-pandemic January – August period.
Top Performers by Contract Volume
The Greene
The Greene reported 11 contracts on studio and 2-beds priced between $730k and $1.7M. The sales office opened in November of last year, and since then, Michael Bethoney, Nayi Shen, Patrick Gorny, and Marina Kote of Nest Seekers have found buyers for 103 of the 129 units.
50-07 5th Street
50-07 5th Street, which opened about a month ago, reported 10 contracts on 1- and 2-bed units asking between $746,200 and $1,670,200. Alexander Pereira and Gala Chan of Modern Spaces now have only 7 of the building's 17 units left to sell.
Queens Top 3s
Top Contracts
Skyline Tower #5711 asking $2.9M
3-bed asking $2,168 PSFNusun Tower #PH3A asking $1.9M
3-bed asking $1,484 PSFSkyline Tower #5808 asking $1.7M
2-bed asking $1,779 PSF
Top Closings
Tangram House South #12R sold at $2.0M
3-bed closing at $1,258 PSFSkyline Tower #4812 sold at $1.8M
2-bed closing at $1,841 PSFSkyline Tower #5508 sold at $1.6M
2-bed closing at $1,708 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 9/1/2023
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