SEPTEMBER BRINGS MODEST DIP IN NEW DEV CONDO SALES YET LUXURY ACTIVITY GAINED
September 2022 NEW DEV CONDO MARKET UPDATE
October 1, 2022
- Contract volume dropped 16% from August and also below 2019 levels
- Manhattan had 104 (+11%), Brooklyn had 80 (-25%), Queens had 31 (-3%)
- The most expensive sale was at 35 Hudson Yards, which signed and then closed a $35M unit
- The Cortland was the top-performer by contract volume
- Luxury activity jumped nearly 30% in Manhattan and 200% in Brooklyn (albeit a small sample size)
- Queens saw the most consistency from August to September although activity in Astoria ramped up
New development contracts decreased 16% in September 2022. Sponsors reported 215 deals, down from 256 in August. Activity also dipped below pre-pandemic norms; however, both 2019 and 2021 saw a decrease between August and September.
The aggregate dollar volume was $495,747,900, down only 5% from August. Median prices were also essentially unchanged with the asking price at $1,480,000 (+1%) and PSF at $1,682 (+0.27%). A handful of big ticket transactions in September are swaying the numbers.
Prices are fairly consistent with the same period in 2021 yet reflect a significant increase against 2019, up 22% and 24% respectively.
“Activity declined modestly in September but the new dev market appears healthy and continues to perform better than other US markets. With mortgage rates now hitting 7%, buyer demand could taper off in the entry-level tier, but there are plenty of investors shopping around at that price point too.”
Kael Goodman - Co-Founder and CEO of Marketproof, Inc.
Manhattan
Contract volume dipped 11% in Manhattan but median prices jumped. Developers reported 104 deals totaling $350,916,380, down from 117 deals in August. Compared to 2021, we see a nearly 40% drop in activity yet a 24% increase from 2019.
The median unit price was up nearly 20% at $2,253,750 and asking PSF was up 6% to $2,116.
Luxury contracts jumped 17% with 28 deals above $4M, up from 24 in August. Four of those contracts were above $10M, including the penthouse at 35 Hudson Yards that was asking $59M but closed in the same month for $35M (a 41% discount).
The month’s top-performer by contract volume was The Cortland, Related Companies latest collaboration with architect Robert AM Stern. The project reported batches totaling 22 deals in September, including a $10.2M 3-bed, and is now 30% sold in six months with CORE handling sales alongside the developer’s in-house team. It was the second most searched project on Marketproof. Subscribers can view the stacking plan here.
Three projects tied for second place with 4 deals each: The Solaire, One Manhattan Square and the ultra-boutique Harlem condo 26 W 127th Street. This group reflects the boro’s more attainable segment of the market – and the sweet spot under $2M. Nearly 40% of the month’s contracts were under $2M.
Manhattan Top 3s
Top Contracts
- 35 Hudson Yards #PH90 asking $49.5M
5-bed asking $4,867 PSF - The Cortland #19CW asking $10.3M
3-bed asking $4,218 PSF - 520 West 28th By Zaha Hadid #10 asking $10M
4-bed asking $2,370 PSF
Top Closings
- 35 Hudson Yards #PH90 sold for $35M
5-bed closing at $3,442 PSF - 109 East 79 #PH16 sold for $28M
5-bed closing at $4,295 PSF - 111 West 57th St #59 sold for $26.3M
3-bed closing at $6,287 PSF
Brooklyn
Brooklyn saw a substantial drop. Sponsors reported 80 contracts totaling $118,243,679, down 25% from August’s 107. Median prices also dipped – unit price was down 12% to $1,087,500 and PSF was down 14% at $1,297. Three luxury deals were reported, compared to only 1 in August.
One Clinton had the most expensive contract, signing a 5-bed asking $8,925,000, and bringing the Brooklyn Heights project to nearly 90% sold. Corcoran is handling sales for developer Hudson Companies with agents Leslie Marshall, James Cornell and Nick Hovsepian.
Olympia Dumbo clinched the other two luxury contracts: a 5-bed asking $7,895,000 and a 3-bed asking $4,375,000. Douglas Elliman Development Marketing is handling sales with The Eklund | Gomes Team.
323 Lenox Road in Flatbush was the top performer by contract volume with 6 deals. The 47-unit condo from developer SGW Properties launched sales in late May and is now 19% sold. Corcoran is handling sales with agents Roni Dotan, Jennifer Carlson, Denise Cataudella and Tara King-Brown.
Extell’s Brooklyn Point and Tishman Speyer’s 11 Hoyt tied for second, each reporting 5 contracts.
Brooklyn Top 3s
Top Contracts
- One Clinton #36B asking $8.9M
5-bed asking $2,104 PSF - Olympia Dumbo #21A asking $7.9M
5-bed asking $2,349 PSF - Olympia Dumbo #21D $4.4M
3-bed asking $2,303 PSF
Top Closings
- 114 6th Ave #B sold for $2.8M
3-bed closing at $1,538 PSF - Front and York - York Tower #17A sold for $2.5M
2-bed closing at $1,898 PSF - 130 Carroll St #1A sold for $2.4M
3-bed closing at $1,063 PSF
Queens
Queens held steady across the board. Sponsors reported 31 deals totaling $26,587,841, on par with August’s 32 for essentially the same aggregate price. Median unit price was up around 6% at $779,688 and PSF was down 3% at $1,223.
Skyline Tower was the top-performer by contract volume (5) and also nabbed the month’s biggest deal, a 2-bed asking $1,888,558. The Long Island City mega-condo is now 80% sold in 3 years. Modern Spaces is handling sales with agents Helen Lee and Janette James. Nestseekers is representing the penthouse collection with agent Michael Bethoney.
Three projects tied for third: habitual top-performers Blvd Queens in Forest Hills and Eden Condominium in LIC and 29-30 12th Street in Astoria.
Astoria saw nearly a third of the month’s sales action. Developments in the neighborhood reported 9 deals, the highest volume since August 2021. In addition to 29-30 12th Street, those projects included 23-05 24th Ave, 30-38 29th Street, 19-14 21st Rd and Sofo Tower.
Queens Top 3s
Top Contracts
- Skyline Tower #6110 asking $1.9M
2-bed asking $1,937 PSF - Skyline Tower #3508 asking $1.6M
2-bed asking $1,676 PSF - 37-29 32nd St #PH asking $1.4M
3-bed asking $1,200 PSF
Top Closings
- Grand Three At Sky View Parc #PH2A sold for $2.4M
4-bed closing at $993 PSF - Skyline Tower #2902 sold for $1.7M
2-bed closing at $1,744 PSF - Skyline Tower #2401 sold for $1.5M
2-bed closing at $1,634 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 10/1/2022
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