MIXED SIGNALS CONTINUE AS WE HEAD TOWARD YEAR’S END
NOVEMBER 2023 NEW DEV CONDO MARKET UPDATE
December 6, 2023
- Deal volume slid 9% from October due to the Thanksgiving holiday and lackluster activity in Queens
- YTD, deal volume and total dollar volume are still 8% and 5% ahead of their pre-pandemic 2015-2019 averages, but that lead has rapidly narrowed since August
- 17% more luxury contracts were signed this month than last, including $45.8M and $23.3M deals in 50 West 66th Street
- This month saw deal volume decrease by 27% from the average pre-pandemic November
Month-over-month, deal volume decreased by 9% to 167 signed contracts, but the other metrics were little changed. The total dollar volume increased marginally to $473M, the median PPSF grew by 2% to $1,654, and the median price rose by 3% to $1.6M.
“Earlier this year, demand was far ahead of its pre-pandemic average*, with a 26% lead by August. Since then, that lead has narrowed significantly. Why did demand begin to wane in September? We don’t know for certain, but that is when mortgage rates struck 7%. If rates are the cause, they may also be the solution since they are now easing.”
Kael Goodman - Co-Founder and CEO of Marketproof, Inc.
Luxury
All metrics increased month-over-month. Compared to October, deal volume grew from 24 to 28 contracts; the total dollar volume rose by 22% to $256M; the median price increased by 5% to $5.9M, and the median PPSF reached $3,012 (+13%).
26 of the 28 luxury deals this month were signed in Manhattan. Regarding deal count, 450 Washington and One High Line tied for the lead with four each. Since sales at 450 Washington launched a year ago, Corcoran Sunshine Marketing Group has found buyers for 100 of 175 units within this waterfront Tribeca rental-to-cooperative conversion. One High Line is certainly no stranger to the luxury leaderboard, and since relaunching the West Chelsea project in September 2022, Deborah Kern and Steve Gold of Corcoran have sold 73 of 235 units.
However, 50 West 66th Street was this month’s clear winner regarding total dollar volume and reported three contracts totaling $76.5M. The sales and marketing team has sold 18 of 124 residences within this Lincoln Square tower since opening a year ago. That sales team comprises agents from three of NYC’s largest firms: Janice Chang and Noble Black represent Douglas Elliman; Lisa Lippman is from Brown Harris Stevens; and Hillary Landis and Beth Benalloul sell for Corcoran.
Manhattan
Compared to October, deal volume increased from 91 to 94 contracts, the total dollar volume grew from $340M to $370M, the median price rose marginally to $2.28M, and the median PPSF fell by 6% to $1,958.
Top Performers by Contract Volume
Tribeca Green
Tribeca Green, a conversion cooperative developed by Related in Battery Park City, reported eleven contracts on 1-, 2-, and 3-bed units ranging from $825K to $2.85M. Corcoran Sunshine Marketing Group has sold 134 units since launching in March.
450 Washington
450 Washington, also a rental-to-cooperative conversion by Related and marketed by Corcoran Sunshine, reported eight contracts on units ranging from 1- to 4-bedrooms, priced between $1.125M and $6.07M. 100 of 175 units have been spoken for since sales launched a year ago.
Manhattan Top 3s
Top Contracts
50 West 66th Street #42NS asking $45.8M
8-bed asking $6,569 PSF50 West 66th Street #43N asking $23.3M
4-bed asking $6,527 PSF111 West 57th Street #32 asking $17.8M
3-bed asking $3,951 PSF
Top Closings
111 West 57th Street #14N sold for $13.1M
4-bed closing at $2,878 PSF432 Park Avenue #36B sold for $12.6M
3-bed closing at $3,135 PSFThe Wales #8A sold for $8.2M
4-bed closing at $2,793 PSF
Brooklyn
Month-over-month, deal volume increased by 7% to 62 contracts, the total dollar volume rose by 3% to $92M, the median price fell by 13% to $1.25M, and the median PPSF grew marginally to $1,429.
Top Performers by Contract Volume
11 Hoyt
11 Hoyt reported four signed contracts on 3-bedroom units listed between $2.195M and $2.395M. Sales for this Downtown Brooklyn new build launched in October 2018, and Corcoran Sunshine Marketing Group has sold 431 of 479 units.
Brooklyn Point
Also in Downtown Brooklyn, Brooklyn Point reported four signed contracts on 1-bedroom residences listed between $1.295M and $1,523,600. Sales launched in April 2018, and this 482-unit building is now 80% sold. In November 2020, Extell Development tapped Serhant to assist their internal sales department.
Brooklyn Top 3s
Top Contracts
Olympia Dumbo #26B asking $6.5M
3-bed asking $2,449 PSFOlympia Dumbo #22B asking $5.4M
3-bed asking $2,434 PSFQuay Tower #15C asking $3.2M
3-bed asking $1,806 PSF
Top Closings
Olympia Dumbo #12B sold for $4.9M
3-bed closing at $2,501 PSF11 Hoyt Street #41F sold for $2.9M
3-bed closing at $1,679 PSFThe Edge, South Tower #PH2F sold for $2.8M
3-bed closing at $1,885 PSF
Queens
Month-over-month, deal volume dropped sharply, from 35 to 11 signed contracts. The total dollar volume subsequently fell from $37M to $10.6M. The median price slipped by 6% to $806K, and the median PPSF grew by 4% to $1,264.
Top Performers by Contract Volume
Skyline Tower
Skyline Tower, in Long Island City, reported four contracts on a pair of studios and a pair of 2-bedrooms asking between $754,320 and $1,919,803. On sale since May 2019, the developers have sold 637 of 800 units at an average of 139 residences per year. Helen Lee's team at Modern Spaces is selling the remaining units.
134-16 35th Avenue
134-16 35th Avenue reported two contracts this week on a pair of 1-beds listed for $567,725 and $573K. Vicki Zhi Saali of Global Real Estate Ventures Group has sold 11 of 69 residences in this Flushing project since sales launched in June.
Queens Top 3s
Top Contracts
Skyline Tower #5401 asking $1.9M
2-bed asking $1,981 PSFSkyline Tower #2203 asking $1.4M
2-bed asking $1,396 PSFNova #25B asking $1.2M
1-bed asking $1,930 PSF
Top Closings
Skyline Tower #PH202 sold for $2.3M
2-bed closing at $2,326 PSFNusun Tower #PH3B sold for $1.8M
3-bed closing at $1,405 PSFThe Greene #19F sold for $1.6M
2-bed closing at $1,816 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 12/1/2023
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