NEW DEV MARKET COOLS AMID SUMMER LULL
JULY 2024 NEW DEV CONDO MARKET UPDATE
August 1, 2024
- Citywide market activity cooled, suggesting that a summer lull may be in effect
- Deal volume dropped by 10% from June, primarily due to a slowdown in Manhattan
- Dollar volume fell by 6% month-over-month, while the average unit price dropped by 13%
- The luxury market continued to underperform, marking its second consecutive month of declines
- Contracts signed are down 9% compared to the same month in pre-pandemic years
As a whole, the new development market showed signs of softening, likely due to the typical summer lull. The reduction in contract activity was concentrated in Manhattan, while Brooklyn and Queens saw modest improvements. Overall deal volume contracted by 10%, dropping from 240 to 217 transactions, and total dollar volume fell by 6%, from $605M to $570M. The median price per square foot (PPSF) dropped by 5%, from $1,835 to $1,746, while the median price dipped by 13%, from $2M to $1.75M.
July's 217 deals marked a 9% decrease compared to the same month during the pre-pandemic years from 2015 to 2019, indicating a potential cooling in the new development market.
Of the 217 deals citywide, 126 (-18%) were in Manhattan, 68 (+3%) were in Brooklyn, and 23 (+15%) were in Queens.
“The new development market softened in July, partly due to the seasonal summer lull. While Manhattan experienced a notable drop in contract activity, Brooklyn and Queens saw modest gains. Looking ahead, economic shifts and dwindling inventory could lead to further market fluctuations.”
Kael Goodman - Co-Founder and CEO of Marketproof, Inc.
Luxury
Demand for luxury condos continued to fall in July, marking the second consecutive month of reduced deal volume. A total of 26 contracts over $4M were reported, down from 39 in June and 54 in May. Despite the drop in the number of contracts, total dollar volume only fell by 3%, from $249M to $242M. This relative strength in dollar volume is attributed to a few high-priced units selling for over $20M. As a result, the median price rose from $5.6M to $6.2M, and the median price per square foot (PPSF) increased by 16%, from $2,480 to $2,866.
50 West 66th Street led the luxury market in July for the second consecutive month, securing three contracts over $4M. The project is represented by Douglas Elliman.
Of the 26 luxury deals this month, 25 were in Manhattan, with one in Brooklyn.
Manhattan
After three months of growth, deal volume in Manhattan declined in July. A total of 120 contracts were reported, down from 154, marking an 18% decrease. Total dollar volume fell by 10%, from $469M to $428M. While the median price fell by 18%, from $2.5M to $2M, the median price per square foot (PPSF) remained stable at $2,149.
Top Performers by Contract Volume
520 Fifth Avenue
520 Fifth Avenue, a 99-unit condo tower in Midtown by Rabina Properties, reported 21 contracts for 1- and 2-bedroom units priced between $1.77M and $4.95M. Since sales launched three months ago, 52% of the units units have been sold. Corcoran Sunshine Marketing Group handles marketing and sales.
Monogram New York
Monogram New York, a 190-unit tower in Turtle Bay developed by Navigation Capital Group and Hopson Development Holdings, reported seven contracts for 1- and 2-bedroom units priced between $1.429 million and $1.989 million. The project has sold 12% of its units. Douglas Elliman Development Marketing handles marketing and sales.
Manhattan Top 3s
Top Contracts
The Giorgio Armani Residences - Unit PH11 asking $32.5M
4-bed asking $7,709 PSF111 West 57th Street - Unit 50 asking $26.95M
3-bed asking $6,000 PSFCentral Park Tower - Unit 65E asking $23.433M
3-bed asking $6,966 PSF
Top Closings
Aman Residences - Unit PHCROWN sold for $135M
7-bed closing at $10,202 PSFThe Cortland - Unit 12AW sold for $10.665M
4-bed closing at $3,547 PSFThe Cortland - Unit 17CW sold for $9.8M
3-bed closing at $4,033 PSF
Brooklyn
Despite the summer lull, Brooklyn experienced a 3% increase in deal volume, with 68 deals compared to 66 last month. Total dollar volume also rose by 11%, from $106M to $118M. However, the median price per square foot (PPSF) dipped slightly by 6%, from $1,535 to $1,439, while the median price increased by 16%, from $1.29M to $1.5M.
Top Performers by Contract Volume
Bergen Brooklyn
Bergen Brooklyn in Boerum Hill led the Brooklyn market with nine deals on 1- to 3-bedroom units, priced between $1.175M and $3.45M. These were the first sales reported since the project launched three months ago. Marketing and sales are managed by Avdoo & Partners Development Marketing.
Brooklyn Point
Brooklyn Point in Downtown Brooklyn reported three signed contracts for 2- and 3-bedroom residences, priced between $2.37M and $3.53M. Since launching sales in 2019, the 482-unit tower has sold 85% of its units. Marketing and sales are jointly managed by Extell Marketing Group and SERHANT.
Brooklyn Top 3s
Top Contracts
Quay Tower - Unit PH1C asking $7.995M
3-bed asking $2,867 PSFBrooklyn Point - Unit 61D asking $3.167M
3-bed asking $2,176 PSFBergen Brooklyn - Unit 505W asking $3.45M
3-bed asking $1,954 PSF
Top Closings
The Calyer Greenpoint - Unit PH sold for $3.495M
3-bed closing at $2,135 PSFBrooklyn Point - Unit 61D sold for $3.175M
3-bed closing at $2,176 PSFQuay Tower - Unit 25D sold for $2.85M
2-bed closing at $1,914 PSF
Queens
Queens experienced a 15% month-over-month increase in deal volume, with 23 contracts reported in July compared to 20 in June. However, total dollar volume decreased by 11%, from $27M to $24M. The median price fell by 12%, from $992K to $870K, and the median price per square foot (PPSF) dipped by 9%, from $1,508 to $1,375.
Top Performers by Contract Volume
Lucent 33
Lucent 33 in Long Island City led the Queens market with ten contracts for 1- and 2-bedroom units, priced between $767K and $1.197M. Since sales began nine months ago, 64% of the 64 units have been sold. Marketing and sales are being overseen by Nest Seekers International.
Noble LIC
Noble LIC in Long Island City reported six contracts for 1- and 2-bedroom units, priced between $825K and $1.28M. Since sales began three months ago, 28% of the 46 units have been sold. Marketing and sales are being managed by The Corcoran Group.
Queens Top 3s
Top Contracts
Corte - Unit 7D asking $2.58M
3-bed asking $1,661 PSFSkyline Tower - Unit 403 asking $1.35M
2-bed asking $1,317 PSFNoble LIC - Unit 5B asking $1.28M
2-bed asking $1,596 PSF
Top Closings
Skyline Tower - Unit 6308 sold for $1.82M
2-bed closing at $1,888 PSFSkyline Tower - Unit 5703 sold for $1.195M
1-bed closing at $1,739 PSFLucent 33 - Unit 6A sold for $1.17M
2-bed closing at $1,315 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 8/1/2024
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