FALL BEGINS WITH SOME MIXED SIGNALS
SEPTEMBER 2023 NEW DEV CONDO MARKET UPDATE
October 4, 2023
- 31% decrease in deal volume from August
- 12% decrease in deal volume from the average pre-pandemic September
- Two mega deals were signed in September: one in Central Park Tower that closed for $29.4M; the other in The Giorgio Armani Residences asking $25M
- YTD, deal volume and total dollar volume are 20% and 12% greater than before the pandemic
Month-over-month, the volume metrics were lower, but the price metrics were higher. Deal volume shrank by 31% to 182 contracts, and the total dollar volume retreated by 17% to $473M. The median price grew by 7% to $1.5M, and the median PPSF rose by 8% to $1,645.
“September was a slow month for new development, with deal volume down from August and down, too, from the pre-pandemic level*. That said, 182 contracts were signed on residences listed from $409K to one that closed for over $29M, totaling nearly half a billion dollars. Still not bad for a month full of holidays and back-to-school disruption.”
Kael Goodman - Co-Founder and CEO of Marketproof, Inc.
Luxury
When comparing the performance of the $4M+ segment of the market from September to August, the metrics are mixed. Deal volume and total dollar volume decreased to 26 (–19%) signed contracts and $229M (–5%), respectively, while the median price held stable at $5.7M, and the median PPSF grew by 4% to $2,589.
24 of the 26 luxury deals this month were signed in Manhattan, with the others signed in Brooklyn. For the fifth consecutive time, One High Line ranks first in terms of deal count and now it also ranks first for total dollar volume. During September, Steve Gold and Deborah Kern found buyers for 3 residences with a combined asking price of $36.5M. Since launching sales in September of last year, the duo has now sold 66 of the building’s 235 units. Central Park Tower was in second place for total dollar volume, with a contract on a unit that was signed and closed in September for $29.4M.
Manhattan
During September, Manhattan was like the city as a whole in that deals were fewer but more expensive. Deal volume and total dollar volume fell to 92 (–21%) signed contracts and $358M (–9%), respectively, while the median price and the median PPSF grew to $2.36M (+11%) and $2,049 (+6%), respectively.
Top Performers by Contract Volume
Tribeca Green
For the second straight month, Tribeca Green reported eleven contracts on studio, 1-, 2-, and 3-bedroom units priced between $755k and $2.65M. Corcoran Sunshine Marketing Group launched sales for Related in March and has already sold 119 of the rental-turned-cooperative residences.
One Manhattan Square
One Manhattan Square reported seven contracts on 1- and 2-bed units priced between $1.28M and $2.37M. Since the 814-unit building launched sales in November 2016, Extell's Inside Sales Team and Corcoran Sunshine Marketing Group have signed an average of 75 contracts per year with 293 left to sell.
Manhattan Top 3s
Top Contracts
Central Park Tower #92E asking $38.4M
4-bed asking $8,952 PSFThe Giorgio Armani Residences #PH10 asking $25.0M
3-bed asking $8,044 PSFOne High Line, West Tower #29A asking $18.3M
4-bed asking $5,004 PSF
Top Closings
200 East 83rd Street #PHC sold for $32.5M
6-bed closing at $4,930 PSFCentral Park Tower #92E sold for $29.4M
4-bed closing at $6,920 PSFOne57 #41A sold for $10.7M
3-bed closing at $3,316 PSF
Brooklyn
Month-over-month, the volume metrics sank while the price metrics grew marginally. Deal volume fell 36% to 59 signed contracts, and the total dollar volume decreased by 34% to $82M. The median price was $1.08M (+3%), and the median PPSF was $1,282 (+1%).
Top Performers by Contract Volume
Brooklyn Point
Brooklyn Point reported three signed contracts on 1- and 2-bed units listed between $1,476,849 and $2,521,545. Sales launched in April 2018, and this 482-unit building is now 78% sold. In November 2020, Extell Development tapped Serhant to assist their internal sales department.
11 Hoyt Street
11 Hoyt Street reported three contracts on 2- and 3-bed units ranging from $1.675M to $2.4M. Launched in October 2018, Corcoran Sunshine Marketing Group has sold 424 of 479 units.
Brooklyn Top 3s
Top Contracts
Olympia Dumbo #12B asking $4.7M
3-bed asking $2,389 PSFThe 415 Degraw #3 asking $4.5M
4-bed asking $2,076 PSFBrooklyn Point #47H asking $2.5M
2-bed asking $2,146 PSF
Top Closings
283 President Street #1 sold for $4.3M
3-bed closing at $1,595 PSF11 Hoyt Street #41A sold for $3.5M
4-bed closing at $1,789 PSFOlympia Dumbo #25C sold for $3.5M
2-bed closing at $2,320 PSF
Queens
Except for the median price, which was up 40% from August to $1.16M, all other metrics were lower month-over-month. Deal volume and the total dollar volume fell by 43% to 31 contracts and $32.7M, respectively, and the median PPSF slid by 2% to $1,350.
Top Performers by Contract Volume
50-07 5th Street
50-07 5th Street reported six contracts on 1- and 2-bed units listed between $784,450 and $1,222,350. Alexander Pereira and Gala Chan of Modern Spaces opened the sales office doors in July and are already only one unit shy of selling out the 17-unit building.
Nova
Nova reported five contracts this week on 2-beds asking from $1.17M to $1.29M. The building launched sales in April 2022, and since then, Kenneth Lee and Sophia Park of Modern Spaces have found buyers for 68 of 86 residences.
Queens Top 3s
Top Contracts
Skyline Tower #4511 asking $2.5M
3-bed asking $1,900 PSF5-13 47th Road #3A asking $1.4M
2-bed asking $1,360 PSFThe Greene #3C asking $1.4M
2-bed asking $1,489 PSF
Top Closings
The Greene #PH3B sold at $1.7M
1-bed closing at $1,776 PSFThe Greene #14D sold at $1.4M
2-bed closing at $1,621 PSFGrand Two at Sky View Parc #PH3G sold at $1.4M
3-bed closing at $957 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 10/1/2023
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