NEW DEVELOPMENT’S MARCH MADNESS
MARCH 2023 NEW DEV CONDO MARKET UPDATE
April 5, 2023
- Compared to the pre-pandemic 2015-2019 March average, 25% more deals were signed across NYC this month
- Compared to the pre-pandemic 2015-2019 Q1 average, 11% more deals were signed citywide during the first quarter of 2023
- Demand for $4M+ luxury residences significantly underperformed both its pre-pandemic March and Q1 benchmarks, potentially indicating a shift in preference toward less expensive apartments
- 300 West 30 Street led the market with 22 contracts signed during March
- In contract since October 2021, Naftali Group closed on a $66.5M sale at The Bellemont this month
Buyers were 25% more active this March than the average March during 2015-2019, with deal volume up from 280 to 350 contracts signed. Q1-2023 finished up 11% compared to its pre-pandemic benchmark. Compared to February, deal volume was 39% higher, and median price was 8% higher, so total dollar volume grew 22% to $757M. Median PPSF was unchanged at $1,693.
“In February’s new dev market report we said ‘worry not, new devs did nicely.’ In March, as the Spring selling season begins, deal volume is surprisingly strong. 350 new dev contracts were signed, 25% more than the average March tally during the pre-pandemic 2015-2019 period*. New dev buyers seized the opportunity to buy in prime Manhattan and Brooklyn projects.”
Kael Goodman - Co-Founder and CEO of Marketproof, Inc.
Luxury
Demand for $4M+ units was 31% lower this month than its pre-pandemic 2015-2019 March average, and Q1 finished down 11% from its respective pre-pandemic benchmark. Compared to February, contract volume was higher by 22% to 45 but, because March deals were 12% less expensive at a median price of $5.45M, total dollar volume slid 2%. Median PPSF fell 14% to $2,503.
Other than an $18.45M contribution from Brooklyn, the $290M in luxury deals this month were signed in Manhattan, with Related’s The Cortland leading the way. The Robert A.M. Stern Architects-designed building recorded 7 deals listed for $37M. 80 units remain, which is 18 months of inventory if sales continue at their current pace. It took Extell Development only 4 contracts to notch over $40M in listed deals at 50 West 66th Street. Sales have only recently begun, and, at the current pace of sales, it would take about 4 years to find buyers for the remaining 117 residences.
Manhattan
With 180 signed contracts this month, demand for Manhattan was 5% stronger than the pre-pandemic 2015-2019 March average. Compared to February, demand was 41% higher. Total dollar volume, however, did not experience a comparable increase, up only 8% to $526M, because this month’s deals were significantly less expensive at $2M compared to $2.5M last month. Median PPSF was unchanged at $2,096.
Top Performers by Contract Volume
300 West 30 Street
300 West 30th Street recorded 22 contracts in March, nineteen of which were 1-beds ranging from $950k to $1.37M, and three were 2-beds asking $1.96M, $1.715M, and $1.675M. Only 21 of 69 units remain, and Aleksey Gavrilov and Joseph Grosso of Corcoran are expected to sell out the building by mid-May if sales continue at their current pace.
450 Washington
450 Washington posted 12 contracts for the second month in a row, seven of which were 1-beds ranging from $1.375M to $1.975M, four were 2-beds ranging from $2.25M to $3.25M, and one a 3-bed listed for $6.47M. In just over 4 months, Corcoran Sunshine Marketing Group has found buyers for 50 residences.
Manhattan Top 3s
Top Contracts
53w53 #48A asking $15.3M
4-bed asking $4,004 PSFMadison House #57A asking $13.7M
4-bed asking $4,049 PSF50 West 66th St #3D asking $12.0M
5-bed asking $2,764 PSF
Top Closings
The Bellemont #PHC sold for $66.5M
11-bed closing at $5,111 PSF109 East 79 #PH19 sold for $25.2M
5-bed closing at $4,538 PSF220 Central Park South #22B sold for $14.8M
3-bed closing at $5,658 PSF
Brooklyn
During March, 145 new dev contracts were signed in Brooklyn, a 61% increase over the average March numbers during the pre-pandemic 2015-2019 period. Demand was 45% higher in March than in February. Median price and total contract volume were significantly higher month-over-month, at $1.1M (+31%) and $208M (+74%), respectively. Median PPSF was higher, too, up 6% to $1,251.
Top Performers by Contract Volume
Post House
Post House recorded 8 contracts in March on 1-, 2-, and 3-beds ranging in asking price from $1.05M to $3.495M. After a year on the market, only 7 of 41 units remain, and a sellout is expected within 2 months. Tamara Abir and Noah Plener of Compass represent the developer.
Brooklyn Point
Brooklyn Point recorded 6 contracts in March on 1- and 2-bed units ranging in price from $1.24M to $2,575,815. On sale for 5 years, the building is now 73% sold, with 143 units remaining. At the current pace of sales, that is 18 months of inventory. Serhant partnered with Extell Development in November 2020 to assist with sales and marketing.
Brooklyn Top 3s
Top Contracts
Quay Tower #10A asking $4.8M
4-bed asking $1,968 PSFOlympia Dumbo #31B asking $4.8M
2-bed asking $2,794 PSF58 Saint Marks Place #516 asking $4.7M
3-bed asking $1,992 PSF
Top Closings
Olympia Dumbo #16A sold for $6.4M
3-bed closing at $2,396 PSFOlympia Dumbo #20E sold for $5.7M
3-bed closing at $2,462 PSFOlympia Dumbo #20A sold for $4.9M
3-bed closing at $2,251 PSF
Queens
The Greene
The Greene recorded 3 contracts during March, all 2-beds last listed for $1.9M, $1.535M, and $1.22M. The project launched less than 5 months ago, and Michael Bethoney, Nayi Shen, Marina Kote, and Michael DeSena of Nest Seekers have sold 23% of the building, with 99 units left to sell. At the current pace of sales, this represents 17 months of inventory.
Nova
Nova also reported 3 signed contracts this week: a pair of 1-beds asking $1,014,300 and $934,500, and a studio listed for $661,500. On sale for less than a year, the building is already nearly half sold. Kenneth Lee and Sophia Park of Modern Spaces have 43 units left to sell, roughly 3 years of inventory at the current sales pace.
Queens Top 3s
Top Contracts
The Greene #PH1A asking $1.9M
2-bed asking $1,548 PSF10-64 Jackson Ave #2A asking $1.5M
3-bed asking $1,138 PSFThe Greene 19C asking $1.5M
2-bed asking $1,621 PSF
Top Closings
The Greene #PH2A sold at $1.9M
2-bed closing at $1,517 PSF10-64 Jackson Ave #6A sold at $1.7M
3-bed closing at $1,249 PSFThe Farrington #15F sold at $1.7M
3-bed closing at $1,464 PSF
Report Methodology
- *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 4/1/2023
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