2022 NYC NEW DEVELOPMENT MARKET REPORT & TOP SELLING BUILDINGS OF THE YEAR
January 3, 2023
- After a record-setting 2021, demand declined mid-year, but PPSF remained stable throughout the year
- Aman New York Residences struck the largest deal of the year at nearly $76M
- Manhattan’s The Solaire inked the largest number of contracts, 84, while Brooklyn’s H7 Condominium sold 92% of its units
- Brooklyn and Queens chipped away at Manhattan’s dominance in new development market share
- New development inventory sits at roughly 12.7K units at year’s end, representing a $35B+ market opportunity
New development activity rose 20% in 2022 compared to the pre-pandemic 2015-2019 average. Sponsors reported 3,278 contracts, representing aggregate sales of $8.3B at projects across the city, up from the $7.1B average.
The median asking price was $1.6M (+6%) and $1,696 PSF (+12%).
Manhattan reported 1,701 deals (+15%), Brooklyn had 1,213 (+20%), and Queens had 364 (+51%).
Though 2022’s numbers appear strong, this is because the first six months of 2022 continued the unsustainable strength seen in 2021, with nearly two-thirds of the year’s activity occurring in the first half of the year.
The current new development inventory sits at roughly 12.7K units, representing a $35B+ market opportunity and nearly five years of inventory.
“At year-end, most metrics we track at Marketproof are higher than their pre-pandemic 2015-2019 average. But don’t let the numbers fool you. The market’s energy ran out in July, and activity levels dipped in the second half of the year. We expect, though, that demand will return to pre-pandemic levels by mid-2023.
For the buildings of the year, we have winners in four categories, towers, midsize, boutique, and top deals. Congrats to the teams at The Solaire, The Cortland, 208 Delancey, and Aman New York Residences for their #1 finishes. ”
Kael Goodman - Co-Founder and CEO of Marketproof, Inc.
Luxury
The luxury segment, deals at $4M and above, echoed the increased demand witnessed in the broader market in 2022 compared to the period 2015-2019. Signed contracts were up 17%, from 432 to 507. Aggregate contract volume increased from $3.6B to $4.0B, a gain of 10%.
Although demand increased, the median luxury contract price dipped by 6% to $6.0M, and the median PPSF increased modestly to $2,690.
Like its total market counterpart, luxury in 2022 can be described by the dichotomy between the first and second halves of the year. Demand was well north of the pre-pandemic average during the first six months but slipped below that average during the second six months.
Manhattan
Compared to the pre-pandemic 2015-2019 average, demand for new development product increased in 2022. The number of signed contracts rose 15% from 1,484 to 1,701, with aggregate volume increasing 11% from $5.5B to $6.1B.
Median figures for the last asking price and last asking PPSF for contracted units increased as well, the former by 2% to $2,410,945 and the latter by 6% to $2,096. With a greater number of new dev offerings in Brooklyn and Queens at lower prices, Manhattan conceded some market share to the other boroughs.
Brooklyn
In 2022, there was significantly more demand for new developments compared to the period 2015-2019, with signed contracts up 20% to 1,213 from an average of 1,009. The growth in the aggregate value of contracts signed was even more pronounced, increasing by 44% from $1.3B to $1.9B.
Median figures for the last asking price and last asking PPSF for contracted units increased significantly as well. The asking price was higher by 16% to $1,196,118, and the asking PPSF increased by 19% to $1,405.
Queens
As compared to the pre-pandemic average, the uptick in demand for Queens far outpaced that of its fellow boroughs. The result of more new developments and a number of buyers choosing Queens over Manhattan led to 51% more contracts being signed in 2022, bringing the tally to 364. Contract volume also increased 40% to $338M.
Although the median asking price for signed contracts dipped 6% to $817,500, the median asking price per square foot increased 10% to $1,300.
Top Selling Buildings of The Year
Marketproof created three categories – towers, midsize, and boutique – to highlight the buildings that inked the most contracts in 2022. We created a fourth category, “top deals,” to recognize those developments that closed the largest deals of the year. Congratulations are in order to the teams at The Solaire, The Cortland, 208 Delancey, and Aman New York Residences for their #1 finishes in each of their respective categories. Although it did not move enough inventory to make the cut, H7 Condominium is an honorable mention for selling out 92% of its units in 2022.
TOWERS (201+ units)
The Solaire
84 deals, representing 29% of all units
Architect: Pelli Clarke Pelli Architects and COOKFOX Architects
Sales: Corcoran Sunshine Marketing Group
Brooklyn Point
80 deals, representing 17% of all units
Architect: Kohn Pedersen Fox Associates and SLCE Architects
Sales: Extell and Serhant
Skyline Tower
78 deals, representing 10% of all units
Architect: Hill West Architects
Sales: Modern Spaces and Nest Seekers International
MIDSIZE (101 - 200 units)
The Cortland
49 deals, representing 34% of all units
Architect: Robert A.M. Stern Architects and SLCE Architects
Sales: Related and CORE
111 Montgomery
47 deals, representing 29% of all units
Architect: Fischer + Makooi Architects
Sales: Tamara Abir, Jacqueline Gill & Carrie McCue of Compass
Greenwich West
39 deals, representing 23% of all units
Architect: AAI Architects
Sales: Kane Manera, Asaf Bar-Lev & Nicole Hechter of Corcoran Sunshine
BOUTIQUE (31 - 100 units)
208 Delancey
50 deals, representing 59% of all units
Architect: ODA Architecture and S M Tam Architect
Sales: Ian Slater & Andi Li of Compass
The Edison Gramercy
47 deals, representing 87% of all units
Architect: Issac & Stern
Sales: Fredrik Eklund, John Gomes & Ellis Bachman of Douglas Elliman
Forena
45 deals, representing 90% of all units
Architect: Morris Adjmi Architects
Sales: Fredrik Eklund, John Gomes, Skyler Rhoten, Justin Tuinstra & Glenn Davis of Douglas Elliman
TOP DEALS
Aman New York Residences - Unit 20A
$75,891,560 ($11,161 PSF) - 4 Bed / 5 Bath
Architect: Dennison, SLCE Architects and Warren & Wetmore
Sales: Aman New York Sales Gallery
220 Central Park South - Unit PH75
$72,000,000 ($14,340 PSF) - 3 Bed / 4.5 Bath
Architect: Robert A.M. Stern Architects
Sales: Corcoran Sunshine Marketing Group
Aman New York Residences - Unit 22A
$56,164,524 ($8,921 PSF) - 4 Bed / 5 Bath
Architect: Dennison, SLCE Architects and Warren & Wetmore
Sales: Aman New York Sales Gallery
Report Methodology
- The period 2015-2019 is 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 1/1/2023
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