NYC’S NEW DEVELOPMENT MARKET STAYS STRONG, 26% GROWTH YTD
MAY 2023 NEW DEV CONDO MARKET UPDATE
June 5, 2023
- 26% more contracts have been signed YTD than the average January - May from pre-pandemic 2015-2019
- Demand for the $4M+ luxury market, which had recently underperformed its historical benchmark, reached its 12-month high in May
- Even after adjusting for a significant amount of batch reporting from Battery Park City’s Tribeca Green (76 contracts) and LIC’s NOVO LIC (27 contracts), May contracts were significantly greater than the pre-pandemic 2015-2019 May average
- 150 Barrow Street in the West Village recorded the largest contract of May, with #PHA priced at $17.5M
This month, Tribeca Green in Manhattan and NOVO LIC in Queens reported 76 and 27 contracts, respectively. Such an unusually large number of contracts is indicative of “batch” reporting, where contracts are signed in previous months but not reported until the current one. Because there is no way to differentiate which contracts were signed in what recent month, a meaningful May-to-April comparison is not possible. However, it is reasonable to assume that those combined 103 contracts were signed since January 1st. So, in lieu of our typical month-to-month comparison, we will compare YTD 2023 to the average January - May during the pre-pandemic 2015-2019 period.
Citywide, YTD demand measured by 1,495 contracts is 26% higher than its pre-pandemic benchmark of 1,188 contracts. Total dollar volume is now 12% higher at $3.52B, and median PPSF has grown 8% to $1,631. Only the median price has receded since the pre-pandemic period, slipping from $1.52M to $1.41M. Even after adjusting for the 103 “batch” contracts this month, significantly more contracts were recorded this May compared to the pre-pandemic 2015-2019 May average.
“Through May, 26% more contracts were signed YTD than the average January - May period during the pre-pandemic years 2015 to 2019.* May’s $4M+ luxury contracts were the largest monthly tally in over a year.”
Kael Goodman - Co-Founder and CEO of Marketproof, Inc.
Luxury
The $4M+ luxury market was unaffected by the batch reporting, i.e., all of the 76 contracts at Tribeca Green and 27 at NOVO LIC were signed on apartments asking less than $4M. Therefore, we can compare May to April and see that contract volume increased from 28 to 66 (+136%), while total dollar volume increased by 86% to $474M. However, the median price and the median PPSF in April were both higher, falling to $5.9M (–22%) and $2,656 (–8%) in May.
60 of the 66 luxury deals this month were signed in Manhattan, with the others signed in Brooklyn. One High Line was the top performer in terms of deal count and total dollar volume, with 9 contracts for nearly $69 million. This brings the total to 20 contracts in 9 months for this dual tower project offering 235 units with a combined price of over $2 billion. Next in line was 200 Amsterdam Avenue, with 6 contracts totaling $44.5M. The building is now 75% sold, with 83 of 111 units sold or in contract.
Manhattan
Year-to-date, 768 contracts have been signed in Manhattan, which is 18% more deal volume than during the same period from 2015-2019, before the pandemic. This year, the total dollar volume is 5% higher at $2.63B, the median PPSF is $2,037 (+3%), and the median price decreased 11% to $2.2M.
Even after adjusting for the 76 “batch” contracts reported by Tribeca Green this month, significantly more contracts were recorded in Manhattan this May compared to the pre-pandemic 2015-2019 May average.
Top Performers by Contract Volume
Tribeca Green
Tribeca Green reported 76 contracts, accumulated over the past two months since sales began, on studio to 4-beds ranging from $609k to $3.525M. The impressive velocity of sales prompted us to feature the 274-unit rental-to-coop conversion as "Building of the Week." Corcoran Sunshine Marketing Group represents the sponsor.
One High Line
One High Line reported 16 contracts on 1-, 2-, and 3-beds priced between $2.33M and $14.325M. Deborah Kern and Steve Gold of Corcoran represent the relaunch of this project and have now found buyers for 20 of 235 residences.
Manhattan Top 3s
Top Contracts
150 Barrow Street #PHA asking $17.5M
4-bed asking $4,082 PSF360 Central Park West #PHD asking $14.8M
5-bed asking $3,837 PSF111 West 57th #28 asking $14.7M
3-bed asking $3,272 PSF
Top Closings
One Waterline Square #PHA sold for $25.5M
5-bed closing at $3,886 PSFOne57 #46C sold for $12.9M
4-bed closing at $3,709 PSFSoori High Line #7B sold for $8.8M
5-bed closing at $2,516 PSF
Brooklyn
Brooklyn was the only borough not affected by May’s batch reporting. Compared to April, contract volume grew by 40% to 133, the total dollar volume increased 64% to $178M, the median price rose 19% to $950k, and the median PPSF inflated 12% to $1,293.
Significantly more contracts were recorded in Brooklyn this May compared to its pre-pandemic 2015-2019 May average.
Top Performers by Contract Volume
110 North First
110 North First reported 15 signed contracts on 1-, 2-, and 3-bed units ranging from $950k to $2.8M. Bianca D'Alessio and The Masters Division at Nest Seekers International have already found buyers for 39% of the 38-unit building in only 3 weeks since sales launched.
114 Lexington Avenue
114 Lexington Avenue reported 7 contracts this week on 1-, 2-, and 3-bed units ranging from $885k to $1.865M. The sales office opened on May 1, and the 16-unit building is already 44%. Nick Hovsepian of Corcoran represents the sponsor.
Brooklyn Top 3s
Top Contracts
Olympia Dumbo #21B asking $5.4M
3-bed asking $2,413 PSFPacific Park Brooklyn #PHE asking $4.8M
3-bed asking $1,969 PSFOne Clinton #29A asking $4.5M
4-bed asking $1,963 PSF
Top Closings
Post House #6E sold for $2.9M
3-bed closing at $1,839 PSFFront & York – York Tower #17L sold for $2.8M
3-bed closing at $1,711 PSFPost House #GARDEN sold for $2.8M
3-bed closing at $1,642 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, 204 contracts have been signed, which is 94% more deal volume than during the same period from 2015-2019, before the pandemic. This year, the total dollar volume is 100% higher at $191M, the median PPSF is $1,256 (+18%), and the median price decreased 6% to $798k.
Even after adjusting for the 27 “batch” contracts reported by NOVO LIC this month, significantly more contracts were recorded in Queens this May compared to the pre-pandemic 2015-2019 May average.
Top Performers by Contract Volume
NOVO LIC
NOVO LIC reported 27 accumulated contracts this week, and all were 1-beds ranging from $659,072 to $799k. Aleksey Gavrilov and Joseph Grosso of Corcoran launched sales in April 2022 and have now sold out the building for the sponsor.
Skyline Tower
Skyline Tower reported 8 contracts this week on studio, 1-, and 2-beds priced from $734,834 to $1,770,147. On sale for 4 years, the developers have placed 580 of 800 units in contract, at a very impressive average annual rate of 145 units. Helen Lee's team at Modern Spaces and Michael Bethoney's team at Nest Seekers International are selling the remaining units.
Queens Top 3s
Top Contracts
Skyline Tower #3902 asking $1.8M
2-bed asking $1,797 PSFThe Greene #PH1B asking $1.6M
2-bed asking $1,693 PSFThe Greene #13C asking $1.5M
2-bed asking $1,600 PSF
Top Closings
Tangram House West #PH2A sold at $2.9M
3-bed closing at $1,426 PSFThe Greene #12C sold at $1.6M
2-bed closing at $1,732 PSFThe Greene #19C sold at $1.5M
2-bed closing at $1,610 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 6/1/2023
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