WORRY NOT, FEBRUARY NEW DEVS DID NICELY
FEBRUARY 2023 NEW DEV CONDO MARKET UPDATE
March 3, 2023
- Compared to the pre-pandemic 2015-2020 average, 6% more deals were signed across NYC this February
- Demand for all boroughs was on par or above its respective pre-pandemic average, with Manhattan recording the greatest growth in contract volume
- 450 Washington, a waterfront cooperative conversion, lead the way with contracts on 12 units asking a combined $67.3M
- The luxury market recorded 37 contracts on residences asking $4M or more, the largest monthly deal total since June 2022
- Month-over-month, Brooklyn’s contract volume was higher by 44% in February
Buyers were 6% more active this February compared to the average February during 2015-2020, with deal volume up from 236 to 249 contracts signed. Compared to January, deal volume was 18% higher and median price was largely unchanged at $1.36M, so total dollar volume grew 6% to $606M. Median PPSF inflated from $1,611 to $1,671.
“For the first time in a long time, monthly demand was higher than its pre-pandemic 2015-2020 average*, suggesting that the rise in contract volume from January into February is not just the expected seasonal increase, but momentum building within the new development market.”
Kael Goodman - Co-Founder and CEO of Marketproof, Inc.
In February, 37 contracts were signed for $4M+ units, slightly lower than its pre-pandemic 2015-2020 average of 39 contracts yet the highest monthly tally since June 2022. Compared to January, contract volume was 16% higher, but all other metrics were lower, largely due to the $63.5M contract last month. Median price slid 8% to $6.2M and total dollar volume slipped from $327M to $295M.
All 37 of the luxury deals this month were signed in Manhattan. 450 Washington led the way in terms of contract volume with 6, total dollar volume with $54.6M, and notched the third largest deal, a 6-bedroom penthouse listed for $17.3M. In just 3 months, 39 residences are in contract and the building is the best-selling YTD. The Cortland recorded three deals, all 3-beds and all listed above $6M, and, in less than a year, the 144-unit project is 38% sold.
With 126 signed contracts, demand for Manhattan in February was 10% higher than its pre-pandemic average and 21% higher than in January. All other metrics were higher month-over-month as well, with median PPSF climbing to $2,058 (+3%), median price increasing to $2.53M (+27%) due to the large volume of luxury deals, and total dollar volume up to $472M (+9%).
Top Performers by Contract Volume
450 Washington is atop the leaderboard with 12 contracts, ranging from a 1-bed asking $1.35M to a 6-bed listed for $17.3M. In just 3 months, Corcoran Sunshine Marketing Group has found buyers for 39 residences, making it NYC’s best-selling building YTD.
300 West 30 Street
300 West 30th Street is on the leaderboard yet again with 9 contracts on 1- and 2-beds ranging from $1.02M to $2.24M. The building has been on the market for only 2 months, yet is 30% sold. If the building's impressive sales velocity continues at its current pace, it will be sold out by August. Aleksey Gavrilov and Joseph Grosso of Corcoran are handling sales.
Manhattan Top 3s
50 West 66th Street #48S asking $22.8M
4-bed asking $6,398 PSF
One57 #41D asking $19.0M
5-bed asking $3,509 PSF
450 Washington #PH1602 asking $17.3M
6-bed asking $4,305 PSF
200 Amsterdam Avenue #44A sold for $21.0M
4-bed closing at $4,495 PSF
Central Park Tower #95W sold for $16.3M
3-bed closing at $5,316 PSF
Beckford Tower #PH31 sold for $15.4M
4-bed closing at $3,708 PSF
Although February demand for Brooklyn, 101 contracts signed, was on par with the average February during 2015-2020, that number was significantly higher than the 70 signed in January. Despite median price being 16% less expensive month-over-month at $835k, total dollar volume still rose from $107M to $120M. Median PPSF fell 5% to $1,177.
Top Performers by Contract Volume
The Newkirk recorded 9 contracts this month: seven 2-beds ranging from $475k to $625k and two 1-beds asking $475k and $400k. Despite being on the market for only 11 months, the project is already 51% sold and should sell out before July if the current pace of sales continues. Bianca D'Alessio, Christian Haag, Justin Mezzatesta, and Dylan Custodero of The Masters Division At Nest Seekers International handle sales and marketing.
Brooklyn Point recorded 9 contracts in February on 1-, and 3-bed units ranging in price from $1.23M to $3,727,545. On sale for nearly 5 years, the building has now sold 333 of 481 residences. Serhant partnered with Extell Development in November 2020 to assist with sales and marketing.
Brooklyn Top 3s
Brooklyn Point #63D asking $3.7M
3-bed asking $2,562 PSF
Brooklyn Point #59D asking $3.52M
3-bed asking $2,414 PSF
Brooklyn Point #57D asking $3.5M
3-bed asking $2,402 PSF
Front And York - Front Tower #18E sold for $3.4M
3-bed closing at $2,077 PSF
Nx (215 North 10th St) #6C sold for $2.9M
2-bed closing at $1,959 PSF
288 Water St #3B sold for $2.6M
3-bed closing at $1,582 PSF
Although February demand for Queens, measured by 22 signed contracts, was significantly less than January’s tally of 37, it was at parity with its pre-pandemic 2015-2020 average. All other February metrics were less than January as well, with median price down 15% to $676k, total dollar volume lower from $34M to $15M, and median PPSF down from $1,424 to $813.
Top Performers by Contract Volume
One Sixteen tops the leaderboard with 4 contracts, all 2-beds asking $735k, $695k, $675k, and $599k. 4 years into sales, the building is now 73% sold with Glenn Davis, Justin Tuinstra, Nicholas Compagnone, and Daniel Kent of The Tuinstra-Davis Team at Douglas Elliman representing the developer.
Skyline Tower recorded 3 contracts in February: a pair of 1-beds last asking $1,159,117 and $1,138,714, and a studio listed for $740,715. In less than 4 years, the developers have placed 571 units in contract, at a very impressive average annual rate of 150 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
Skyline Tower #6204 asking $1.2M
1-bed asking $1,825 PSF
Skyline Tower #5604 asking $1.1M
1-bed asking $1,793 PSF
Hero #7C asking $800k
1-bed asking $1,338 PSF
The Greene #PH4C sold at $2.4M
3-bed closing at $1,795 PSF
Corte #7I sold at $2.0M
3-bed closing at $1,401 PSF
10-64 Jackson Ave #PH1 sold at $1.98M
3-bed closing at $1,406 PSF
- *The average of February numbers during the period 2015-2020 is 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 3/1/2023
Access available new development inventory, past sales for 250K condos, and pipeline of future projects.