NEW DEV MARKET SENDS MIXED SIGNALS
AUGUST 2024 NEW DEV CONDO MARKET UPDATE
September 1, 2024
- For the past three years, August demand citywide has increased modestly, from 232 to 236 to 246 signed contracts
- In August, Brooklyn demand was at a 15-month high
- Year-over-year, Queens demand dipped 44% this August
- 156 new units were launched across nine projects in Brooklyn and four in Queens, with no new launches in Manhattan
- Supply contracted slightly from 10,622 to 10,532 units
"With year-over-year deal volume higher in Manhattan and Brooklyn, but lower in Queens and luxury, August’s numbers provide us with mixed signals on whether or not falling mortgage rates are causing demand to rise. For a clear answer, we’ll need to wait for September’s or even October’s numbers when buyers have had time to react to the lower rate environment.”
Luxury
24 contracts priced at or above $4M were signed in August, compared to 26 last month and 31 last year. Six contracts were signed on units last asking more than $10M, with the three largest deals being $19.5M, $28M, and $43.5M. Of the 24 luxury contracts this month, 23 were signed in Manhattan. The other deal was in Brooklyn.
50 West 66th Street led the luxury market in July for the third consecutive month, securing four contracts over $4M. The project is represented by Douglas Elliman.
Notable Deals
Central Park Tower - #39B
Signed and closed for $43.5M - 5-bed sold for $5,733 PSFOne High Line, East Tower - #PH25A
Last asking $28M - 4-bed asking $5,164 PSF
Manhattan
123 contracts were signed in August, compared to 125 last month and 116 last year. The median price was $1.99M and the median PPSF was $2,084.
No new projects launched in August.
Top Performer by Contract Volume
520 Fifth Avenue
520 Fifth Avenue, a 99-unit condo tower in Midtown by Rabina Properties, reported 9 contracts on 1- and 2-bedroom units priced between $2.09M and $4.975M. Sales launched four months ago, and 61% of the units have already sold. Corcoran Sunshine Marketing Group handles marketing and sales.
Brooklyn
98 contracts were signed in August, compared to 71 last month and 76 last year. In fact, this month’s deal volume was the largest since May 2023. The median price was $1.25M and the median PPSF was $1,299.
Nine boutique projects launched sales, adding 69 new development units in total.
Top Performer by Contract Volume
Kensington Manor
Kensington’s new 76-unit project, Kensington Manor, reported 10 contracts on studio and 1-bedroom units priced between $370K and $590K. Corcoran Group represents developer ZHL Group and reports 11 deals since launching two months ago.
Queens
24 contracts were signed in August, compared to 23 last month and 43 last year. The median price was $922,500 and the median PPSF was $1,196.
Four projects launched sales, adding 87 new development units in total.
Top Performer by Contract Volume
Vela
Vela, a 29-unit new project in Astoria, reported four contracts on 1- and 2-bedroom units priced between $748K and $1.288M. Serhant launched sales for the sponsor in November of last year and has contracts on 9 units.
Report Methodology
- For “Top Performer by Contract Volume,” if there is a tie by deal count, the building with the largest dollar volume of deals is selected.
- 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 9/1/2024
Access inventory, past sales for over 1 million new development and resale properties, and pipeline of future projects.