NEW DEV MARKET SHOWS MODEST GAINS
MAY 2024 NEW DEV CONDO MARKET UPDATE
June 3, 2024
- Citywide, all key metrics showed moderate but positive gains, signaling stablity as we head into summer
- Deal volume rose 1% from April and 10% compared to the pre-pandemic period of 2015-2019
- Dollar volume increased 18% month-over-month, indicating demand for a more premium product
- The luxury market saw a 17% month-over-month increase in deal volume, maintaining elevated demand
- Despite higher mortgage rates, the new development market continues to normalize to pre-pandemic levels
Across NYC, the new development market remained steady month-over-month with modest gains in key metrics. Contracts increased by 1%, from 248 in April to 251 in May. Demand improved in Manhattan and Brooklyn, while Queens saw a decline. Total dollar volume rose 18%, from $693M to $816M. The median price per square foot (PPSF) increased 7%, from $1,637 to $1,747, and the median price rose 3%, from $1.8M to $1.9M.
May's deal volume showed a 10% increase over the pre-pandemic May average from 2015 to 2019, indicating continued normalization in the new development market.
Of the 251 deals citywide, 140 (+9%) were in Manhattan, 93 (+3%) were in Brooklyn, and 18 (-38%) were in Queens.
“The new development market in NYC remained consistent, with stable contract numbers and increases in total dollar volume and median prices. This trend suggests a return to pre-pandemic norms, indicating there are still buyers despite the elevated mortgage rates. With a thin pipeline of new inventory coming onto the market, we expect total inventory to erode in the coming years, particularly in Manhattan.”
Kael Goodman - Co-Founder and CEO of Marketproof, Inc.
Luxury
Demand in the luxury segment remains strong, with six consecutive months of increased deal volume. In May, 54 contracts over $4M were reported, up from 46 in April. Total dollar volume rose by 35%, from $356M to $482M. The median price improved from $6.4M to $6.8M, and the median PPSF increased by 10% to $2,977.
The Cortland and One High Line led the luxury market in May, each securing five contracts over $4M. The Cortland is represented by CORE Group Marketing, and One High Line by Corcoran Sunshine Marketing Group.
Of the 54 luxury deals this month, 53 were in Manhattan, and one was signed in Brooklyn.
Manhattan
Manhattan led all boroughs in deal volume, showing the greatest month-over-month improvement. Contracts increased by 9%, from 129 to 140. Total dollar volume rose 28%, from $524M to $670M. The median price increased 32%, from $2.6M to $3.5M, and the median PPSF went up 6%, from $2,125 to $2,257.
Top Performers by Contract Volume
Monogram New York
Monogram New York, a 190-unit condo tower in Turtle Bay by Navigation Capital Group and Hopson Development Holdings, reported six contracts for 1- and 2-bedroom units priced between $1.34M and $2.2M. Since sales launched nine months ago, 10 units have been sold. Marketing and sales are managed by Douglas Elliman Development Marketing.
Sutton Tower
Sutton Tower, a 120-unit supertall in Sutton Place developed by Gamma Real Estate and JVP Management, reported six contracts for 1- to 3-bedroom units priced between $2.295M and $7.05M. Corcoran Sunshine Marketing Group has sold six units since sales launched a year ago.
Manhattan Top 3s
Top Contracts
The Giorgio Armani Residences - Unit 5 asking $25M
4-bed asking $5,135 PSFThe Centrale - Unit PH70/11C asking $24.95M
5-bed asking $4,631 PSF50 West 66th Street - Unit 17CD asking $24.95M
6-bed asking $3,508 PSF
Top Closings
The Centrale - Unit PH70/11C sold for $24.55M
5-bed closing at $4,556 PSFCentral Park Tower - Unit 69W sold for $14.35M
3-bed closing at $4,534 PSFOne High Line - WEST TOWER - Unit 27C sold for $10.55M
3-bed closing at $3,711 PSF
Brooklyn
Brooklyn experienced a modest 3% increase in deal volume, rising from 90 to 93 contracts. However, total dollar volume decreased by 10%, from $135M to $125M. The median price dropped 19%, from $1.4M to $1.15M, and the median PPSF fell 9%, from $1,336 to $1,230.
Top Performers by Contract Volume
9 Chapel Street
9 Chapel Street led Brooklyn with four deals on 1-bedroom units, priced between $1.06M and $1.35M. Since launching sales five months ago, the 27-unit condo has sold 44% of its units. Sales are managed by The Corcoran Group.
Brooklyn Point
Brooklyn Point in Downtown Brooklyn reported three signed contracts for 2-bedroom residences priced between $2.14M and $2.54M. Since sales began in 2019, the 482-unit tower has sold 84% of its units. Marketing and sales are managed by Extell Marketing Group and SERHANT.
Brooklyn Top 3s
Top Contracts
189 Prospect Place - Unit 1 asking $4.2M
3-bed asking $1,502 PSF381 Bergen Street - Unit 2 asking $3.4M
3-bed asking $1,746 PSF11 Hoyt Street - Unit PHD asking $3.3M
2-bed asking $2,079 PSF
Top Closings
One Clinton - Unit 28C sold for $4.3M
3-bed closing at $1,349 PSFThe Huron - Unit 5CW sold for $3.3M
3-bed closing at $2,114 PSFThe Huron - Unit 8CW sold for $3.25M
3-bed closing at $2,056 PSF
Queens
Queens saw the biggest drop in deal volume across boroughs, falling 38% from 29 contracts in April to 18 in May. Total dollar volume decreased by 33%, from $30M to $20M. The median price fell 14%, from $1M to $870K, but the median PPSF rose 3%, from $1,400 to $1,440.
Top Performers by Contract Volume
Skyline Tower
Skyline Tower in Long Island City reported six contracts for 1- and 2-bedroom units priced between $1.2M and $2.1M. Since sales began in May 2019, 708 out of 800 units have been sold. Helen Lee's team at Modern Spaces is handling the remaining units.
Sofo Tower
Sofo Tower in Astoria reported two contracts for 1-bedroom units priced at $780K and $785K. Since sales began in 2021, 10 out of the 26 units have been sold. The Corcoran Group is managing the sales.
Queens Top 3s
Top Contracts
Skyline Tower - Unit 6301 asking $2.1M
2-bed asking $2,180 PSFSkyline Tower - Unit 6112 asking $2.1M
2-bed asking $2,119 PSFSkyline Tower - Unit 6310 asking $1.9M
2-bed asking $1,997 PSF
Top Closings
Grand Three At Sky View Parc - Unit 18M sold for $2M
3-bed closing at $1,032 PSFTangram House South - Unit 10R sold for $1.9M
3-bed closing at $1,204 PSFSkyline Tower - Unit 5709 sold for $1.8M
2-bed closing at $1,886 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 6/1/2024
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