THE NEW YEAR KICKS OFF IN RIGHT DIRECTION
JANUARY 2024 NEW DEV CONDO MARKET UPDATE
Feburary 1, 2024
- Citywide, deal volume experienced a 30% uptick from December, marking the first month since August 2023 to surpass 200 contracts
- Total dollar volume soared by an impressive 87% month over month, bolstered by a $149M contract at Central Park Tower
- 15% more luxury deals were signed this month compared to December, representing more than half of the total dollar volume
- Compared to January 2023, the first month of 2024 marked a 5% rise in deal volume and a 46% surge in dollar volume
Month-over-month, most metrics showed a positive trend. Deal volume increased 30% to 214 signed contracts from 165 in December. The total dollar volume surged to $786M from $420M, topping the previous six months. The median PPSF remains essentially unchanged, with a slight dip of 1% from $1,701 to $1,691. The median price rose 21% to $1.73M from $1.43M last month.
January 2024 was the first month since August 2023 to surpass 200 contracts reported. Of the 214 deals citywide, 113 (53%) were in Manhattan, 78 (36%) were in Brooklyn, and 23 (11%) were signed in Queens.
“In the second half of 2023, we noted two correlated trends: an increase in mortgage rates and a decrease in contract activity. As we conclude the first month of 2024, these trends are reversing. For the first time since August 2023, contract activity across the city surpassed the 200 mark, and mortgage rates have eased more than one percent since a high of nearly 8% in November 2023. While it's still too early to tell, initial indicators point to a positive rebound in 2024.”
Kael Goodman - Co-Founder and CEO of Marketproof, Inc.
Luxury
Compared to December, all metrics ticked up. Deal volume grew from 27 to 31 contracts; the total dollar volume surged 125% to $463M; the median price rose by 15% to $6.9M, and the median PPSF reached $2,842 (+2%). 31 of the 32 luxury deals this month were signed in Manhattan.
50 West 55th Street led in deal count with four contracts over $4M. The Lincoln Square tower found buyers for 23 of 124 residences since sales launched a little over a year ago. The sales team comprises agents from three of NYC’s most prominent firms: Janice Chang and Noble Black of Douglas Elliman; Lisa Lippman of Brown Harris Stevens; and Hillary Landis and Beth Benalloul of Corcoran.
In terms of dollar volume, Central Park Tower was the clear winner. A pair of contracts totaled $174M, including a multi-floor penthouse for $149M, with Extell Marketing Group and Corcoran Sunshine representing the sponsor and The Eklund Gomes Team of Douglas Elliman representing the buyer. Central Park Tower has sold 57% of the 178 units since sales started in 2019.
Manhattan
Compared to December, deal volume increased from 70 to 113 (61%) contracts, the total dollar volume grew 135% from $275M to $645M, the median price dipped slightly to $2.5M from $2.7M, and the median PPSF fell by 8% to $2,038.
Top Performers by Contract Volume
Tribeca Green
Tribeca Green, a conversion cooperative developed by Related in Battery Park City, reported nine contracts on 1-, 2-, and 4-bed units ranging from $930K to $3.45M. Corcoran Sunshine Marketing Group has sold 147 units since launching sales ten months ago.
Claremont Hall
Claremont Hall, a 187 condo in Morningside Heights by L+M Development Partners and Lendlease reported seven contracts on 1- to 3-bed units, priced between $1.7M and $4.75M. 34% of the 187 units have found buyers since sales launched in 2022. Corcoran Sunshine Marketing Group handles marketing and sales.
Manhattan Top 3s
Top Contracts
Central Park Tower #107/108S asking $149M
7-bed asking $11,906 PSFOne High Line #East PH26 asking $49M
6-bed asking $7,076 PSFThe Giorgio Armani Residences #9 asking $25M
5-bed asking $5,519 PSF
Top Closings
The Cortland #3DE sold for $12.1M
3-bed closing at $5,236 PSFOne High Line #West 26A sold for $10.25M
3-bed closing at $3,775 PSFClaremont Hall #PH sold for $9.99M
4-bed closing at $2,982 PSF
Brooklyn
Deal volume was unchanged from December, with back-to-back 78 contracts reported, the total dollar volume decreased by 13% to $115M, the median price rose slightly from $1.25M to $1.28M, and the median PPSF dipped marginally to $1,407.
Top Performers by Contract Volume
The Brooklyn Tower
The Brooklyn Tower tied Tribeca Green for the most contracts this month with nine deals on studio to 3-bedroom units, last asking between $980K and $3.6M. Sales for this Downtown Brooklyn supertall launched in May 2022, and Douglas Elliman Development Marketing has sold 19 of 143 units.
235 North Henry Street
235 North Henry Street in Greenpoint reported five signed contracts on 2-bedroom residences ranging from $1.195M to $1.395M. Sales launched six months ago and the five contracts this month represent 63% of the eight units at this Brooklyn boutique. Corcoran Group handles marketing and sales.
Brooklyn Top 3s
Top Contracts
Parlour #11A asking $4.3M
5-bed asking $1,328 PSFThe Brooklyn Tower #57F asking $3.6M
3-bed asking $1,865 PSF112 India Street #PHA asking $3.5M
4-bed asking $1,717 PSF
Top Closings
Quay Tower #PH3A sold for $9.03M
4-bed closing at $2,542 PSF11 Hoyt Street #5E sold for $4.35M
4-bed closing at $1,598 PSFTThe 415 Degraw #4 sold for $2.95M
3-bed closing at $1,882 PSF
Queens
Month-over-month, deal volume rose by 35%, from 17 to 23 signed contracts. The total dollar volume nearly doubled from $13.2M to $26.2M. The median price ticked up to $815K from $785K, and the median PPSF slipped 17% from $1,475 to $1,326
Top Performers by Contract Volume
Skyline Tower
Skyline Tower, in Long Island City, reported eight contracts on studios and 2-bed units asking between $754K and $2.05M. On sale since May 2019, the developers have sold 670 of 800 units at an average of 139 residences per year. Helen Lee's team at Modern Spaces is selling the remaining units.
Lucent 33
Lucent 33, also in Long Island City, reported the first five contracts since launching sales two months ago. The units are all 1- or 2-bed residences last asking between $772K and $1.179M. The new entrant to the Queens market has sold 8% of the 64 units. Nest Seekers International is handling marketing and sales.
Queens Top 3s
Top Contracts
The Greene #PH3C asking $2.29M
2-bed asking $1,691 PSFSkyline Tower #6001 asking $2.05M
2-bed asking $2,113 PSFSkyline Tower #5801 asking $2.04M
2-bed asking $2,102 PSF
Top Closings
The Greene #PH1C sold for $2.27M
3-bed closing at $1,677 PSF50-07 5th Street #PH2 sold for $1.47M
2-bed closing at $1,534 PSF50-07 5th Street #5B sold for $1.22M
2-bed closing at $1,450 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 2/1/2024
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