NYC NEW DEVELOPMENT CONTRACTS DROP 20% IN OCTOBER 2022
OCTOBER 2022 NEW DEV CONDO MARKET UPDATE
November 1, 2022
- Activity dipped 20% from September and down 36% from pre-pandemic
- Strong luxury performance pushed median prices up
- Manhattan had 75 (-28%), Brooklyn had 79 (no change), Queens had 17 (-45%)
- No ultra-prime deals in October – $17M was the top contract, signed at 150 East 78th Street
- Mega condos like Skyline Tower and Brooklyn Point continue to sell well. More on that here »
NYC new development activity dropped 20% in October with 171 sponsor deals city-wide, down from 214 in September. The same period in 2021, an anomalous year in real estate, had 378 deals (-55%), but we also see a -36% dip compared to October 2019 (269 contracts). Monthly transaction volume is down and falling below pre-pandemic norms.
The dip wasn’t nearly as pronounced in the luxury sector. Sponsors reported 28 contracts on units asking above $4M, compared to 31 in September (-10%) and 22 the same month pre-pandemic.
Strength at the high-end swayed median pricing. While aggregate dollar volume was down nearly 19% at $407,020,957, median unit price and PPSF were fairly consistent at $1,455,000 (-1%) and $1,585 (-6%).
Brooklyn was the only boro without a loss, notching 79 contracts (no change). Manhattan had 75 (-28%) and Queens had 17 (-45%).
“As temperatures cool so is the new dev condo market. Activity dropped 20% last month and fell below what we’d consider a normal October. The pace of deceleration aligns with rising rates and we’re watching that closely with another hike on the horizon.”
Kael Goodman - Co-Founder and CEO of Marketproof, Inc.
Manhattan
Acitivity dropped nearly 30% but median prices rose significantly due to luxury transactions.
75 deals were reported across 41 projects, totaling $278,163,950 (+23%). Median unit price was up 19% to $2,710,000 (+19%) while PPSF was essentially unchanged at $2,126 (+0.23%)
TOP PERFORMERS BY CONTRACT VOLUME
Greenwich West
City’s highest contract volume: 7 contracts on 1- and 2-beds asking from $1.9M to $3.9M. Now 76% sold, Corcoran Sunshine Marketing Group is repping the project with Nicole Hechter, Kane Manera, Asaf Barlev.
One Wall Street
4 contracts on studios and 1-beds asking from $1.2M to $2M. Compass Development Marketing Group is handling sales with Kirk Rundhaug and Landis Hosterman. The project is averaging 3.4 monthly deals over the past 12 months.
208 Delancey St
4 contracts on studio to 2-bed units asking from $795K to $1.6M. Compass is handling sales with Andy Li and Ian Slater. Now approaching 60% sold and averaging 3.5 monthly deals over the past 12 months.
Manhattan Top 3s
Top Contracts
150 East 78th St #DPH11B asking $17M
5-bed asking $4,442 PSF50 West #32CD asking $12.95M
1228 Madison Ave #10 asking $11.2M
4-bed asking $2,909 PSF
Top Closings
111 West 57th St #PH74 sold for $50.5M
4-bed closing at $7,085 PSF111 West 57th St #46 sold for $26.5M
3-bed closing at $5,905 PSF146 East 78th St #8A sold for $14.2M
4-bed closing at $4,915 PSF
Brooklyn
October mirrored September’s 79 contracts and prices were fairly consistent too.
Deals were reported across 48 buildings, totaling $112,907,728 (+1%). Median unit price was also consistent at $995,000 (-0.49%) as was median PPSF at $1,316 (+3.31%).
TOP PERFORMERS BY CONTRACT VOLUME
45 Argyle
5 contracts on 2- and 3-beds asking from $600K to $865K. The rehab condo is nearly 70% sold, averaging 3.7 monthly deals over the past quarter. At this pace Douglas Elliman could reach sell out by year’s end. Allison Dubuisson, Fredrik Eklund, John Gomes and Giuseppe Airo are handling sales.
567 Ocean Ave
5 contracts, mostly studios with the exception of a 1-bed. Asking prices on these units ranged from $399K to $800K. The project is 99% sold. Nestseekers International is handling sales with Michael Bethoney, Natanel Malkoukian and Yitzchak Khaimov.
Brooklyn Point
4 contracts on 1- and 2-bed units asking from $1.177M to $2.156M. The 482-unit mega condo is almost 70% sold with Extell’s in-house sales team averaging an impressive 7.6 monthly deals over the past 12 months.
Brooklyn Top 3s
Top Contracts
One Clinton #38B asking $9M
5-bed asking $2,121 PSFQuay Tower #24B asking $4.9M
3-bed asking $2,358 PSFQuay Tower #15B asking $4.4M
3-bed asking $2,137 PSF
Top Closings
Quay Tower #24B sold for $4.9M
3-bed closing at $2,358 PSF388 Washington Ave #2 sold for $4.4M
4-bed closing at $1,124 PSF11 Hoyt St #54A sold for $4.3M
4-bed closing at $2,049 PSF
Queens
Queens had the greatest dip, down to 17 deals from 31 in September. Deals signed across 9 buildings totaled $15,949,279 (-40%) but median unit price and PPSF were consistent at $765,000 (-2%) and $1,220 (-0.22%).
TOP PERFORMERS BY CONTRACT VOLUME
Novo LIC
4 contracts on 1-beds asking in the $700K to $800K range. Now 76% sold and averaging 3.5 contracts over the past 6 months. At this pace, Corcoran Group’s Gavrilov Gross Team could sign the remaining units by early 2023.
10-64 Jackson Ave
2 contracts on 1-beds asking $765K and $785K. The project is 60% sold and averaging 2 deals a month over the past 6 months. Modern Spaces is handling sales with Alexander Pereira and Gala Chan.
11-16 Main Ave
2 contracts on 1-beds asking around $700K. The Astoria project is now 40% sold, averaging 1.4 contracts a month over the past 12 months. Compass is handling sales with Tim Rothman, Shawn Sellick and Kaci Kaplan.
144-69 Barclay Ave
2 contracts on 2-beds asking $750K and $808K. The project is nearly 30% sold, averaging 1.3 contracts a month over the past 3 months. Global Real Estate Ventures Group is handling sales with Vicki Zhi Saali.
Skyline Tower
2 contracts: a studio asking $783,931 and a 2-bed asking just under $2M. The 801-unit mega condo is nearly 70% sold, averaging an impressive 9 monthly contracts over the past 12 months. Modern Spaces is handling sales for most of the project with Helen Lee and Janette James. Nestseekers is repping the penthouse collection with Michael Bethoney.
30-37 32nd St
2 contracts: a 1-bed asking $688K and a 2-bed asking just over $1M. The 7-unit condo is 43% sold, averaging a contract a month since sales launched this spring. Modern Spaces is handling sales with Gregory Kyroglou.
Queens Top 3s
Top Contracts
Galerie #210 asking $2.1M
3-bed asking $1,445 PSFSkyline Tower #5902 asking $2M
2-bed asking $1,997 PSF14-40 31st Ave #3F asking $1.1M
2-bed asking $976 PSF
Top Closings
Tangram House West #PH3A sold at $3.5M
4-bed closing at $1,451 PSFCorte #7J closing at $2.1M
3-bed closing at $1,467 PSFTangram House South #9Q closing at $2M
3-bed closing at $1,259 PSF
Report Methodology
- 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 11/1/2022
Access inventory, past sales for over 1 million new development and resale properties, and pipeline of future projects.