FEWER CONTRACTS BUT LUXURY TIER PERFORMS WELL
JUNE 2022 NEW DEV CONDO MARKET UPDATE
July 1, 2022
- Contract volume decreased city-wide but Manhattan is still surpassing its pre-pandemic activity as median pricing in the borough rises
- The market is bifurcating with luxury buyers driving up median pricing in Manhattan and Brooklyn
- Brooklyn’s contract activity dipped below 2019 norms for the first time since the post-pandemic recovery, which could signal a correction if the trend continues
- Closings at Front & York show Brooklyn’s highest-end projects can support elevated PPSF and price increases
New York City’s new developments reported 264 sponsor contracts in June 2022, a 26% decrease from May’s 359 deals that marks the biggest month-over-month drop in three consecutive months of declining activity. Agents also reported 462 resale condo sales, a 21% decrease from May.City-wide contract levels in June remain in line with the same period in 2019 (pre-pandemic), when 247 deals were reported, but for the first time in 19 months Brooklyn’s activity dipped below that threshold – and by a sizable 16%. This is the trend to watch in Q3.
Aggregate dollar volume dropped 13% city-wide while the median PPSF was up nearly 4% to $1,753. The median unit price also increased from May, rising 15.43% to $1,595,000, and slightly above June 2021 when it was $1,513,125. At a time when fewer buyers are transacting, the activity is now leaning toward higher priced units.
“Some analysts are sounding the alarm for a correction but with overall pricing still above 2019 levels it’s too soon to call this a downturn. What’s clear is the market is bifurcating with luxury buyers steering the ship and driving continued price growth across the boroughs as entry-level audiences are seeing their spending power diminished.”
Kael Goodman - Co-Founder and CEO of Marketproof, Inc.
Manhattan
June’s most expensive contract was a $26,495,000 penthouse within the tower portion of Beckford House & Tower, the two-building development from Icon Realty Management and designed by Studio Sofield. Only one penthouse remains and the buildings are both 94% sold within three years, although Beckford House has 32 units to the tower’s 72.
The Cortland, Related Companies’ latest Robert A.M. Stern-designed project, also stood out in June, and not only because it was among the top five most viewed buildings on Marketproof. Less than a month after launching sales, two big ticket units are in contract: a $23,500,000 five-bedroom and a $16,750,000 three-bedroom.
Manhattan Top 3s
Top Contracts
- Beckford Tower PH29 last asking $26,495,000
- The Cortland unit 22AW last asking $23,500,000
- 109 East 79th Street unit 6W last asking $16,850,000, developed by Legion Investment Group with architecture by Steven Harris Architects
Top Closings
- Aman New York Residences unit 22A sold for $56,164,524 (representing a 10.17% discount), technically closed in May but recorded in June
- Aman New York Residences unit 19A sold for $29,091,376, developed by OKO Group with architecture by Dennis, SLCE Architects and Warren & Wetmore
- Aman New York Residences unit 17A sold for $29,000,000 (representing an 8.87% discount)
- 11 North Moore unit 5B sold for $14,300,000, developed by VE Equities with architecture by Morris Adjmi Architects
Brooklyn
While overall activity levels decreased through the quarter, Brooklyn’s highest-end projects are keeping pace, with Olympia Dumbo setting the tone for new contracts and Front & York setting the bar for sold PPSF.
Fortis Property Group’s Olympia Dumbo inked two of the month’s priciest contracts at $5,350,000 and $4,900,000, on the heels of nabbing May’s top three. The development is nearing 30% sold within nine months and closings are likely on the horizon. The industry is waiting to see if Fortis Property Group achieves their average asking PPSF of $2,204, well above the borough’s average sold PPSF of $1,171.
Around the corner, the two-tower Front & York is proving that Brooklyn’s luxury buyers are paying a premium. The project from CIM and LIVWRK had June’s top three closings, with each deal reflecting a price increase and sold PPSF up to $2,882.
11 Hoyt Street also reported a $5,000,000 penthouse contract, asking $2,071 per square foot. The Downtown Brooklyn project is now 76% sold with closings reflecting $1,425 per square foot on average.
Brooklyn Top 3s
Top Contracts
- Olympia Dumbo 24B asking $5,350,000
- 11 Hoyt Street PHEasking $5,000,000, developed by Tishman Speyer with architecture by Studio Gang and Hill West Architects
- Olympia Dumbo 17A asking $4,900,000
Top Closings
- Front & York PHB in the York Tower sold for $8,840,782 (representing a 12.98% increase)
- Front & York Unit 8T in the Front Tower sold for $6,250,000 (representing a 5.04% increase)
- Front & York PH20A in the York Tower sold for $4,672,985 (representing an 8.67% increase)
Queens
After a long stretch of large-scale projects like Skyline Tower leading the top contracts, June brought a trend toward smaller, boutique-size developments with fewer than 70 units. Anable in Hunter’s Point started selling its 22 condos in January and is already 27% sold. BK Developers reported the month’s most expensive deal – a three-bedroom, three-bathroom asking $1,998,000 and $1,509 per square foot. The borough’s average sold PPSF in Q2 was $935.
Queens Top 3s
Top Contracts
- Anable PH2 asking $1,998,000, with architecture by Zproekt
- The Rowan Unit 2D asking $1,995,000, developed by RockFarmer Properties with architecture by DXA Studio
- Eden Condominium Unit 7J by architect Stephen B Jacobs Group asking $1,595,000
Top Closings
- Grand Three at Skyview Parc PH3Asold for $2,252,350 (representing a 9.87% discount), developed by ONEX Corporation with architecture by Peter Clewes and ArchitectsAlliance
- Skyline Tower Unit 5710 sold for $1,707,818 (representing an 8.2% discount), developed by Risland Holdings, United Construction & Development and FSA Capital, with architecture by Hill West
- Skyline Tower Unit 5610 sold for $1,682,362 (representing a 4.76% discount)
Report Methodology
- 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 7/1/2022
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