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    FEWER CONTRACTS BUT LUXURY TIER PERFORMS WELL

    JUNE 2022 NEW DEV CONDO MARKET UPDATE

    July 1, 2022


    1. Contract volume decreased city-wide but Manhattan is still surpassing its pre-pandemic activity as median pricing in the borough rises
    2. The market is bifurcating with luxury buyers driving up median pricing in Manhattan and Brooklyn
    3. 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
    4. Closings at Front & York show Brooklyn’s highest-end projects can support elevated PPSF and price increases

    heroNew 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.


    hero

    “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

    Nearly 52% of June’s contracts were reported in Manhattan, with 137 deals totaling $550,159,218. This reflects a 32% decline in activity and a 14% decrease in aggregate dollar volume from May, yet compared to June 2019 there were 36% more contracts and aggregate dollar volume was 17% higher. Median unit price jumped 25% to $2,495,000 and median PPSF increased over 10% to $2,246.

    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

    1. Beckford Tower PH29 last asking $26,495,000
    2. The Cortland unit 22AW last asking $23,500,000
    3. 109 East 79th Street unit 6W last asking $16,850,000, developed by Legion Investment Group with architecture by Steven Harris Architects

    Top Closings

    1. Aman New York Residences unit 22A sold for $56,164,524 (representing a 10.17% discount), technically closed in May but recorded in June
    2. Aman New York Residences unit 19A sold for $29,091,376, developed by OKO Group with architecture by Dennis, SLCE Architects and Warren & Wetmore
    3. Aman New York Residences unit 17A sold for $29,000,000 (representing an 8.87% discount)
    4. 11 North Moore unit 5B sold for $14,300,000, developed by VE Equities with architecture by Morris Adjmi Architects

    Brooklyn

    New developments in Brooklyn reported 90 sponsor contracts, showing a nearly 19% dip from May and a 16% decrease compared to the same period in 2019. Aggregate dollar volume decreased 7.22% to $143,746,500 while median PPSF was also down at $1,255 (-5.68%). The median unit price increased 7.86% to $1,159,500, aligning with figures from the same period in 2021 and 2019.

    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

    1. Olympia Dumbo 24B asking $5,350,000
    2. 11 Hoyt Street PHEasking $5,000,000, developed by Tishman Speyer with architecture by Studio Gang and Hill West Architects
    3. Olympia Dumbo 17A asking $4,900,000

    Top Closings

    1. Front & York PHB in the York Tower sold for $8,840,782 (representing a 12.98% increase)
    2. Front & York Unit 8T in the Front Tower sold for $6,250,000 (representing a 5.04% increase)
    3. Front & York PH20A in the York Tower sold for $4,672,985 (representing an 8.67% increase)

    Queens

    The borough saw 37 new development sponsor contracts in June, a more than 21% decrease from the previous month and a slight 5% decrease below the same period in 2019. Monthly aggregate dollar volume was down 18.79% and -14% compared to June 2019. Median unit price held steady while the median ppsf decreased less than 1%.

    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

    1. Anable PH2 asking $1,998,000, with architecture by Zproekt
    2. The Rowan Unit 2D asking $1,995,000, developed by RockFarmer Properties with architecture by DXA Studio
    3. Eden Condominium Unit 7J by architect Stephen B Jacobs Group asking $1,595,000

    Top Closings

    1. 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
    2. 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
    3. 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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