NEW DEV MARKET CONTINUES ON UPWARD TRAJECTORY
MARCH 2024 NEW DEV CONDO MARKET UPDATE
April 1, 2024
- Citywide, deal volume rose by 7% month-over-month, continuing an upward trajectory for the fourth month
- Total dollar volume rose 18% to $796M, the best month since June of 2023
- The luxury market saw a 26% increase in deal volume from last month and a 7% increase in dollar volume
- While the March numbers are upbeat, they fall short of the March average during the pandemic recovery (2021-2023) and align more closely with pre-pandemic (2015-2019) numbers
The upward momentum continues for the fourth month, though at a more subdued pace. Deal volume rose 7% from 262 in February to 281 in March. Deal count in Manhattan and Brooklyn was essentially unchanged, but Queens saw an uptick of 57%. The surge in Queens is attributed to a batch of 23 contracts reported at 134-16 35th Avenue. Total dollar volume increased by 18% to $769M from $676M. The median price per square foot (PPSF) dipped slightly from $1,635 to $1,587, and the median price decreased by 7% from $1.62M to $1.5M. The drop in unit price and PPSF reflects a more significant share of the deal volume originating in Queens, a borough with more modestly priced units.
While March's performance improved month over month, the deal volume represents a 56% decrease compared to the average of 439 deals per month during the pandemic recovery period from 2021 to 2023. The demand in March 2024 aligns more closely with the 289 average during the pre-pandemic period from 2015 to 2019.
Of the 281 deals citywide, 133 (-1%) were in Manhattan, 107 (+5%) were in Brooklyn, and 41 (+57%) were signed in Queens.
“The new dev market has been on an upward trajectory since the start of 2024. March continues this trend, although at a diminshed pace. With this month's demand closely resembling that of the pre-pandemic period, we may see some normalization of the market as mortgage rates stabilize.”
Kael Goodman - Co-Founder and CEO of Marketproof, Inc.
Luxury
The luxury segment saw deal volume jump by 26% month over month, reaching a nine-month peak of 43 contracts. The total dollar volume grew by 42% from $300M to $427M. The median price rose 7% from $5.9M to $6.4M, and the median PPSF was unchanged at $2,631.
One High Line led in deal volume with six contracts over $4M. The West Chelsea complex found buyers for 95 of 235 residences since sales launched a little over a year ago. Corcoran Sunshine Marketing Group handles sales and marketing.
125 Perry Street led in dollar volume with three contracts totaling $112M, or 26% of the luxury market. The West Village boutique has sold 3 of the 7 residences. Compass handles sales and marketing.
Of the 43 luxury deals this month, 40 were in Manhattan, and three were signed in Brooklyn.
Manhattan
Compared to February, deal volume was essentially unchanged at 133 contracts this month compared to 134 last month. However, total dollar volume rose by 24% from $482M to $597M, signaling deals signed on high-priced units. Accordingly, the median price increased by 16% from $2.3M to $2.7M. The median PPSF dipped lower by 3% to $2,001.
Top Performers by Contract Volume
The Broad Exchange Building
The Broad Exchange Building, a 307-unit conversion condo in the Financial District by LCOR, reported eight contracts on 1- and 2-bed units priced between $935K and $1.87M. 177 units have sold since sales launched in 2019. Reuveni Real Estate handles marketing and sales.
Tribeca Green
Tribeca Green, a conversion cooperative developed by Related in Battery Park City, reported seven contracts on 1- and 2-bed units ranging from $865K to $1.7M. Corcoran Sunshine Marketing Group has sold 165 units since launching sales a year ago.
Manhattan Top 3s
Top Contracts
125 Perry Street - Unit PHW asking $57.5M
5-bed asking $8,088 PSF50 West 66th Street - Unit 41NS asking $46.75M
5-bed asking $6,734 PSF125 Perry Street - THW asking $32M
4-bed asking $4,691 PSF
Top Closings
Aman Residences, New York - Unit 23A sold for $50.1M
4-bed closing at $8,038 PSFAman Residences, New York - Unit 16C sold for $21.7M
3-bed closing at $4,945 PSF111 West 57th Street - Unit 32 sold for $15.4M
3-bed closing at $3,422 PSF
Brooklyn
Deal volume rose 5% to 107 contracts from 102 last month. The total dollar volume dipped slightly by 4% to $165M from $172M. The median price decreased by 17% from $1.58M to $1.3M. The median PPSF was unchanged at $1,394.
Top Performers by Contract Volume
11 Hoyt Street
11 Hoyt Street led Brooklyn with ten deals on 2- and 3-bed units, last asking between $1.75M and $4.3M. Since launching sales in 2018, the project has sold 95% of the 479 units. Corcoran Sunshine Marketing Group handles sales.
The Huron
The Huron in Greenpoint reported eight signed contracts on 1-to-3-bed residences ranging from $910K to $3.3M. Since sales started five months ago, the 170-unit project has found buyers for 34% of the units. SERHANT handles marketing and sales.
Brooklyn Top 3s
Top Contracts
Quay Tower - Unit PH3C asking $6.5M
3-bed asking $2,545 PSF207 North 8th Street - TH1 asking $4.995M
4-bed asking $1,713 PSF11 Hoyt Street - Unit PHC asking $4.3M
2-bed asking $2,076 PSF
Top Closings
Olympia Dumbo - Unit 12A sold for $7.3M
4-bed closing at $2,365 PSF142-144 Clymer Condominium - Unit 5 sold for $3.3M
4-bed closing at $1,247 PSF110 First Place - Unit 4 sold for $2.98M
3-bed closing at $1,762 PSF
Queens
Deal volume jumped by 57%, from 26 to 41 signed contracts, marking the fifth consecutive month of increases. The total dollar volume rose 53%, from $22M to $34M. The median price decreased from $767K to $705K, and the median PPSF slipped 8%, from $1,197 to $1,100.
Top Performers by Contract Volume
134-16 35th Avenue
134-16 35th Avenue, in Flushing, led all boroughs with 23 contracts on 1- and 2-bed units asking between $555K and $1.455M. On sale since June of last year, the project has found buyers for 39 of the 69 units. Global Real Estate Ventures handles sales.
Skyline Tower
Skyline Tower, in Long Island City, reported six contracts on 1- and 2-bed units asking between $769K and $1.925M. On sale since May 2019, the developers have sold 685 of 800 units. Helen Lee's team at Modern Spaces is selling the remaining units.
Queens Top 3s
Top Contracts
Skyline Tower - Unit 6209 asking $1.925M
2-bed asking $1,975 PSFSkyline Tower - Unit 5709 asking $1.9M
2-bed asking $1,948 PSFSkyline Tower - Unit 6108 asking $1.7M
2-bed asking $1,795 PSF
Top Closings
The Greene - Unit PH3C sold for $2.3M
3-bed closing at $1,715 PSFSkyline Tower - Unit 5801 sold for $1.95M
2-bed closing at $2,015 PSFSkyline Tower - Unit 5601 sold for $1.94M
2-bed closing at $2,004 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 4/2/2024
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