February was another strong month for new development sales across New York City. Developers reported 402 new sponsor contracts, a 26% increase from the month prior and a 35% increase over the same period last year.

Following a record year for new development sales with 5,000 sponsor units sold, the city’s total sponsor inventory has decreased approximately 7% since February 2021, from 15,000 units to 14,100, accounting for 3,900 units that were added to total inventory.

Even though median unit price is up 9% year over year, there is a healthy stock of new development condos for individual buyers and institutional investors to choose from, which translates to negotiability and potential opportunities for bulk purchases as sponsors look to reduce exposure and pay down debt.

While Manhattan and Brooklyn showed significantly higher contract volume, a 17% change and 35% change respectively, Queens stood out in terms of pricing. Despite a 9% drop in monthly contracts, the borough saw a 21% jump in median price per square foot and a 31% increase in median unit price. The current market is driving buyers to the outer boroughs in search of value and that demand is starting to influence pricing in Queens.

Based on the February data, Marketproof will be paying close attention in the months ahead to activity at trophy towers, which have been flexing their influence in all three boroughs.

Manhattan’s 111 West 57th Street had the city’s most expensive deal, with a contract signed for Penthouse 78 last asking $53.8M, a positive sign for Midtown. In Brooklyn, Olympia Dumbo claimed the borough’s five most expensive deals with contracts ranging from $12.9M to $6.995M. And in Queens, Skyline Tower was responsible for four of the top five transactions with a range of two-bedrooms all asking around $1.6M (although it’s important to note that Galerie in Long Island City earned the number one slot with an impressive $2.3M two-bedroom contract).

The month’s top deals also highlight the staying power of some of the city’s most prolific developers. In addition to the Billionaire’s Row contract, JDS Development reported a $16M deal at The Fitzroy this month, as progress continues onsite at the company’s 9 Dekalb Avenue project (aka The Brooklyn Tower). The Naftali Group reported two significant five-bedroom contracts at The Bellemont, one for $25M and another for $19M, continuing their winning streak on the Upper East Side. And Fortis Property Group appears to be making good on their promise to set records in Brooklyn with Olympia Dumbo, despite some national attention on their stalled Seaport project.