THE FIRST HALF OF 2023 POSTS HISTORICALLY STRONG NUMBERS
JUNE 2023 NEW DEV CONDO MARKET UPDATE
July 5, 2023
- 28% more contracts have been signed YTD than the average January - June
- 38% more contracts were signed in June than on average
- At 50 contracts, June demand for $4M+ luxury product was down from May yet still well above its historical benchmark of 36 contracts
- One High Line’s West Tower reported contracts on two penthouses priced at $52M and $30M, and 180 East 88th Street reported a deal on the penthouse asking $29M
In May, Tribeca Green in Manhattan and NOVO LIC in Queens reported 76 and 27 contracts, respectively. Such an unusually large number in a single month indicates “batch” reporting, where contracts are signed in previous months but not reported until the current one. Because it's unclear which contracts were signed in May and which were signed before that, a meaningful June-to-May comparison is not possible for Manhattan, Queens, or citywide. Instead, we will compare YTD 2023 to the average January - June during pre-pandemic 2015-2019 since it is reasonable to assume that those combined 103 contracts were signed since January 1st. Brooklyn and the $4M+ luxury segment were unaffected by the batch reporting, so the typical month-to-month comparison will be made.
Citywide, YTD demand measured by 1,809 contracts is 28% higher than its historical average of 1,415 contracts. Total dollar volume grew by 2% to $3.818 billion. The median PPSF grew 7% to $1,618, and the median deal this year was 5% less expensive than in previous years at $1.435M.
Similar to the YTD comparison, 38% more contracts were recorded this June.
“It’s been a very good year for new development and we see this continuing in the second half. Not only is demand outperforming its historical numbers*, it’s building steam. Across all price points, significantly more contracts have been signed YTD, and the same is true for the luxury market, which has already recorded 9 contracts over $20M.”
Kael Goodman - Co-Founder and CEO of Marketproof, Inc.
Luxury
The $4M+ luxury market was unaffected by May’s batch reporting, i.e., all 76 contracts at Tribeca Green and 27 at NOVO LIC were signed on apartments asking less than $4M. Therefore, we can compare June to May and see that contract volume decreased by 24% from 66 to 50, yet is still well above the historical average of 36. All other metrics were relatively stable month-to-month, with total dollar volume down 3% to $458M, the median price up 5% to $6.2M, and the median PPSF up 1% to $2,692.
47 of the 50 luxury deals this month were signed in Manhattan, with the others signed in Brooklyn. For the second month in a row, One High Line was the top performer in terms of deal count and total dollar volume, with 8 contracts for more than $119M, with $82M of that generated from two penthouse deals. This brings the total to 35 contracts in 10 months for this dual tower project offering 235 units with a combined price of over $2 billion. Next in line was Central Park Tower, with 3 contracts totaling more than $56M. The $4B building is now more than 50% sold, with 97 of 178 units sold or in contract.
Manhattan
Compared to the same historical period, this year’s deals are more numerous but less expensive. Year-to-date, 917 contracts (+17%) have been signed at a median price of $2.26M (–8%). The total dollar volume is 10% higher at $3.278 billion and the median PPSF is $2,048 (+4%).
18% more contracts were recorded in Manhattan this June.
Top Performers by Contract Volume
Tribeca Greene
Tribeca Green reported 21 contracts on studio, 1-, 2-, and 3-beds ranging from $739k to $2.925M. Corcoran Sunshine Marketing Group represents the sponsor and has sold 97 units since launching in March.
One High Line
One High Line reported 11 contracts on 1-, 2-, 3-, 5-, and 6-beds priced between $2.335M and $52M. Deborah Kern and Steve Gold of Corcoran represent the relaunch of this project and have now found buyers for 35 of 235 residences.
Manhattan Top 3s
Top Contracts
One High Line, West Tower #PH36 asking $52M
5-bed asking $7,509 PSFOne High Line, West Tower #PH35 asking $30M
5-bed asking $5,188 PSF180 East 88th Street #PH asking $29.0M
5-bed asking $5,265 PSF
Top Closings
Central Park Tower #84E sold for $24.9M
4-bed closing at $5,846 PSF200 East 83rd Street #30A sold for $11.2M
5-bed closing at $3,347 PSF15 Hudson Yards #PH81B sold for $10.0M
4-bed closing at $3,074 PSF
Brooklyn
Brooklyn was the only borough not affected by May’s batch reporting. So, comparing June to May, contract volume decreased from 133 to 122, the total dollar volume decreased from $176M to $169M, the median price rose from $948k to $1.1M, and the median PPSF fell from $1,293 to $1,255.
24% and 49% more contracts were recorded YTD and in June, respectively, compared to the 2015-2019 averages.
Top Performers by Contract Volume
11 Hoyt Street
11 Hoyt Street reported 9 monthly contracts on studio, 2-, and 3-beds ranging from $795k to $3.7M. Launched in October 2018, Corcoran Sunshine Marketing Group has sold an impressive 415 of 479 units.
435 Tompkins Ave
435 Tompkins Ave also reported 9 contracts on 1- and 2-bed units ranging from $675k to $1.16M. Sales began two months ago, and Mat Gundell and Christine Blackburn of The Barak | Blackburn Team at Compass have already sold 25% of the 40-unit building.
Brooklyn Top 3s
Top Contracts
One Clinton #37A asking $9.0M
4-bed asking $2,183 PSFQuay Tower #9A asking $4.8M
4-bed asking $1,958 PSFOne Clinton #31B asking $4.6M
4-bed asking $1,795 PSF
Top Closings
Quay Tower #PH2A sold for $9.1M
4-bed closing at $2,564 PSFPost House #PHB sold for $4.7M
4-bed closing at $2,198 PSF98 Front #PH3A sold for $3.7M
3-bed closing at $1,754 PSF
Queens
In recent years, many new developments have sprung up across the borough, and we see this growth reflected in the numbers. Year-to-date, 256 contracts have been signed, which is 99% more deal volume than the historical average. Total dollar volume is 108% higher at $245M, the median PPSF grew 19% to $1,262, and the median price decreased 2% to $824k.
103% more contracts were recorded in Queens this June.
Top Performers by Contract Volume
134-16 35th Avenue
134-16 35th Avenue reported 6 contracts on a 2-bed asking $1,129,980 and five 1-beds ranging from $611,090 to $672,500. Vicki Zhi Saali of Global Real Estate Ventures Group represents the sponsor, and these are the first deals reported since the 69-unit building launched sales 3 weeks ago.
The Marina Astoria
The Marina Astoria reported 5 contracts this month on 1-beds ranging from $675k to $1.015M. The 67-unit project launched at the beginning of the year and is now 15% sold. Michael Bethoney, Michael DeSena, and Linglong (Lynette) Li of Nest Seekers represent the sponsor.
Queens Top 3s
Top Contracts
Skyline Tower #4211 asking $2.5M
3-bed asking $1,884 PSF5-17 47th Road #2A asking $1.8M
3-bed asking $1,333 PSF5-17 47th Road #1A asking $1.6M
3-bed asking $1,330 PSF
Top Closings
Tangram House South #PH2F sold at $2.7M
3-bed closing at $1,345 PSFSkyline Tower #3608 sold at $1.7M
2-bed closing at $1,738 PSF10-64 Jackson Avenue #2A sold at $1.6M
3-bed closing at $1,159 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 7/1/2023
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