NEW DEV MARKET RETURNS TO PRE-PANDEMIC NORMS
JUNE 2024 NEW DEV CONDO MARKET UPDATE
July 1, 2024
- Citywide, key metrics showed a mixed performance, with slowing deal activity but rising prices
- Deal volume decreased by 5% from May, with the decline confined to Brooklyn
- Dollar volume dropped 26% month-over-month, reflecting a cooling in the ultra-luxury market
- The luxury market experienced a 28% month-over-month drop in deal volume but remained above 2023 levels
- In the last week of June, contract activity surged to the second-highest weekly level of 2024, signaling optimism
The new development market remained stable with key metrics showing mixed performance. Despite a retreat in contract activity and dollar volume, median unit price and price per square foot saw improvement. Demand improved in Manhattan and Queens, while Brooklyn saw a decline. Total dollar volume dropped by 28%, from $816M $601M as fewer $10M+ contracts were signed. The median price per square foot (PPSF) increased 5%, from $1,747 to $1,835, and the median price rose 7%, from $1.9M to $2M.
June's 237 deals nearly matched the pre-pandemic June average of 325 deals from 2015 to 2019, indicating continued normalization in the new development market.
Of the 237 deals citywide, 151 (+8%) were in Manhattan, 66 (-28%) were in Brooklyn, and 20 (+11%) were in Queens.
“The new development market showed stability in June, with mixed performance across key metrics. Despite slower activity, deal numbers matched pre-pandemic averages. Notably, Manhattan secured over 60% of the month's contracts for the first time since 2018, highlighting its recent strength despite decreasing inventory.”
Kael Goodman - Co-Founder and CEO of Marketproof, Inc.
Luxury
Demand in the luxury segment retracted from last month but remains elevated compared to 2023 averages. In June, 39 contracts over $4M were reported, down from 54 in May. Total dollar volume fell by 48%, from $482M to $249M, due to fewer ultra-luxury deals. Consequently, the median price dipped from $6.8M to $5.6M, and the median PPSF dropped 17%, from $2,977 to $2,480.
50 West 66th Street led the luxury market in June, securing six contracts over $4M. The project is jointly represented by Douglas Elliman and Corcoran Group.
Of the 39 luxury deals this month, 36 were in Manhattan, with the remaining three in Brooklyn.
Manhattan
Since the beginning of 2024, Manhattan has led all boroughs in deal volume despite thin inventory. In June, contracts signed increased by 8%, from 140 to 151. However, total dollar volume dropped by 30%, from $670M to $469M, due to a cooling in the ultra-luxury market this month. The median price decreased by 29%, from $3.5M to $2.5M, and the median PPSF slipped by 3%, from $2,257 to $2,201.
Top Performers by Contract Volume
520 Fifth Avenue
520 Fifth Avenue, a 99-unit condo tower in Midtown by Rabina Properties, reported 27 contracts for 1- and 2-bedroom units priced between $1.75M and $3.7M. Since sales launched two months ago, 31 units have been sold. Corcoran Sunshine Marketing Group handles marketing and sales.
The Treadwell
The Treadwell, a 66-unit condo in Lenox Hill developed by Zeckendorf Development and Dart Interests, reported eight contracts for 1- to 3-bedroom units priced between $1.715M and $4.2M. Brown Harris Stevens Development Marketing has sold 24 units since sales launched six months ago.
Manhattan Top 3s
Top Contracts
The Giorgio Armani Residences - Unit 8 asking $23.5M
5-bed asking $5,188 PSF50 West 66th Street - Unit 12D asking $11.75M
5-bed asking $3,021 PSF199 Chrystie Street - Unit PH2 asking $11.495M
5-bed asking $2,434 PSF
Top Closings
Central Park Tower - Unit 107/108 sold for $115M
7-bed closing at $9,158 PSF111 West 57th Street - Unit 30 sold for $13.25M
3-bed closing at $2,950 PSFThe Wales - Unit 6A sold for $7.762M
4-bed closing at $2,644 PSF
Brooklyn
Brooklyn was the only borough to experience a drop in deal volume in June, with a 28% decrease compared to May. However, total dollar volume saw a more modest decline of 15%, from $125M to $105M, as more premium units went into contract. Consequently, the median PPSF rose 23%, from $1,237 to $1,518, and the median price increased by 8%, from $1.15M to $1.25M.
Top Performers by Contract Volume
The Huron
The Huron in Greenpoint led Brooklyn with five deals on studio to 3-bedroom units, priced between $750K and $3.25M. Since launching sales eight months ago, the 170-unit condo project has sold 60% of its units. Marketing and sales are handled by SERHANT.
The Graham
The Graham in East Williamsburg reported four signed contracts for 1- and 2-bedroom residences priced between $995K and $2.1M. Since sales launched two months ago, the 6-floor boutique has sold five of its eight units. Marketing and sales are managed by Compass.
Brooklyn Top 3s
Top Contracts
One Clinton - Unit 30B asking $4.565M
4-bed asking $1,781 PSFOne Clinton - Unit 28B asking $4.495M
4-bed asking $1,754 PSFOne Clinton - Unit 26B asking $4.495M
4-bed asking $1,756 PSF
Top Closings
Front and York - Unit F19L sold for $3.15M
3-bed closing at $1,933 PSFThe Huron - Unit 9CW sold for $3.075M
3-bed closing at $1,944 PSF11 Hoyt Street - Unit 43F sold for $3.055M
3-bed closing at $1,774 PSF
Queens
Queens saw an 11% month-over-month increase in deal volume, with 20 contracts reported in June compared to 18 in May. Total dollar volume rose by 30%, from $20M to $27M. The median price increased by 14%, from $870K to nearly $1M, while the median PPSF rose by 5%, from $1,440 to $1,508.
Top Performers by Contract Volume
Noble LIC
Noble LIC in Long Island City reported five contracts for studio to 2-bedroom units priced between $680K and $1.295M. Since sales began two months ago, 8 out of the 46 units have been sold. The Corcoran Group is overseeing marketing and sales.
Skyline Tower
Skyline Tower in Long Island City reported six contracts for 1- to 3-bedroom units priced between $2.083M and $3.05M. Since sales began in May 2019, 89% of the 800 units have been sold. Helen Lee's team at Modern Spaces is selling the remaining units.
Queens Top 3s
Top Contracts
Skyline Tower - Unit PH208 asking $3.05M
3-bed asking $2,302 PSFSkyline Tower - Unit 5911 asking $2.89M
3-bed asking $2,180 PSFSkyline Tower - Unit 5811 asking $1.9M
3-bed asking $2,174 PSF
Top Closings
Skyline Tower - Unit 6206 sold for $1.303M
1-bed closing at $1,849 PSF31-22 29th Street - Unit 6B sold for $950K
2-bed closing at $1,029 PSFArcadia Woodside - Unit 6A sold for $927K
2-bed closing at $1,239 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 7/1/2024
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