2023 NYC NEW DEVELOPMENT MARKET REPORT & TOP SELLING BUILDINGS OF THE YEAR
January 1, 2024
- Purchases far outpaced new listings, and inventory contracted from 12.7K units in 2022 to 10.2K units in 2023
- Although Manhattan and Brooklyn were on par with their pre-pandemic averages, deal volume was 6% higher citywide thanks to exceptionally strong demand for Queens, especially in Long Island City
- Year-over-year, the median price metrics were stable in Manhattan, down about 10% in Brooklyn and up about 10% in Queens
- Demand for $4M+ luxury product was down 14% from 2022 but on par with the historical average
- The top ten contracts of the year totaled nearly $375M
Year-over-year, new development activity fell 8% in 2023. Sponsors reported 2,957 contracts, representing aggregate sales of $7.2B.
The median asking price was $1.45M, and the median asking PPSF was $1,612, slipping 7% and 5%, respectively.
Manhattan deal count fell 12% to 1,485, Brooklyn deals slid 9% to 1,025, and Queens saw an increase from 408 to 447 contracts.
Though down from 2022, demand for NYC new dev was 6% greater than its pre-pandemic 2015-2019 average. Manhattan and Brooklyn matched their historical numbers, but Queens nearly doubled it.
“Since launching Marketproof Pro in the fall of 2020, we have seen the NYC new development market go from over-supplied to under-supplied. When we started, there were nearly 15,000 unsold units. This represented nearly five years of inventory. As we begin 2024, there are just over 10,000 unsold units. Or, about three and a half years of inventory. Going forward, we see inventory continuing to contract, and we see the three NYC new development markets – Manhattan, Brooklyn, and Queens – continuing to diverge.
In Manhattan, where land is expensive and buildings need to be larger, we expect inventory to dip below three years as few new projects launch. In Brooklyn, where boutique projects rule the day, we see lots of activity distributed across many neighborhoods. In Queens, a market that is 90% smaller than Manhattan and 34% smaller than Brooklyn, we see continued growth in projects of all sizes.
For the buildings of the year, we have winners in four categories: highrise, midsize, boutique, and top deals. Congrats to the teams at Tribeca Green, The Greene, 300 West 30 Street, and Central Park Tower for their #1 finishes”
Kael Goodman - Co-Founder and CEO of Marketproof, Inc.
Luxury
Year-over-year, demand for luxury retreated from 492 to 422 contracts. In line with previous years, 93% of those deals were signed in Manhattan, 7% were signed in Brooklyn, and Queens is yet to report a contract on a unit priced at $4M or more.
The total dollar volume of this year’s 422 contracts is $3.43B, the median price was $6M, and the median PPSF was $2,715.
This year’s deal count was an exact match to the average annual deal count during the pre-pandemic years 2015-2019.
Manhattan
Compared to 2022, the volume metrics dropped by double digits, while the price metrics remained stable. Deal volume fell by 12% to $1,485 signed contracts, and the total dollar volume decreased by 10% to $5.4B. The median price was $2.33M, and the median PPSF was $2,058.
Manhattan inventory dropped from 5,826 units at year-end 2022 to 4,821 units at year’s end. It would take 3.3 years to absorb these unsold units with an average price of $5.3M. Fewer deals were signed this year, yet inventory still decreased, confirming that the pipeline of new product has slowed.
Brooklyn
Year-over-year, all metrics were lower. Deal volume fell 9% to 1,025 contracts; the total dollar volume decreased by 18% to $1.4B; the median price retreated 15% to $997K; and the median PPSF slipped by 8% to $1,264.
Like Manhattan, demand decreased year-over-year, but so did inventory levels, indicating that less new inventory has come online. Available units decreased from 3,788 last year to 2,553. This represents 2.5 years of inventory priced at an average of $1.47M.
Queens
Compared to 2022, Queens advanced across all metrics. Deal volume increased by 10% to 447 signed contracts; the total dollar volume rose by 36% to $442M; the median price grew by 11% to $879K; and the median PPSF reached $1,335 (+7%).
Inventory decreased from 3,149 to 2,783 units. These unsold units have an average price tag of $897K and, if the pace of this year’s sales continues, would be absorbed in 6.2 years.
Top Selling Buildings of The Year
This marks our second annual awards ceremony to honor those buildings that reported the largest volume of deals and most expensive contracts of 2023. Deal volume winners are separated into three building categories – highrise, midsize, and boutique. Congratulations to the teams at Tribeca Green, The Greene, 300 West 30 Street, and Central Park Tower for their #1 finishes in each of their respective categories.
TOWERS (201+ units)
Tribeca Green
141 deals, representing 51% of all units
Architect: Robert A.M. Stern Architects and Ismael Leyva Architects
Sales: Corcoran Sunshine Marketing Group
One High Line
68 deals, representing 29% of all units
Architect:Bjarke Ingels Group and Woods Bagot
Sales:Deborah Kern and Steve Gold of Corcoran
One Manhattan Square
54 deals, representing 7% of all units
Architect: Adamson Associates
Sales: Extell Marketing Group and Corcoran Sunshine Marketing Group
MIDSIZE (101 - 200 units)
The Greene
82 deals, representing 64% of all units
Architect: Marvel Architects
Sales: Michael Bethoney, Nayi Shen, Patrick Gorny, and Marina Kote of Nest Seekers
450 Washington Street
82 deals, representing 47% of all units
Architect: SLCE Architects and Roger Ferris + Partners
Sales: Corcoran Sunshine Marketing Group
111 Montgomery
38 deals, representing 23% of all units
Architect: Fischer + Makooi Architects
Sales: Tamara Abir, Carrie McCue, and Jacqueline Mumm-Gill of Compass
BOUTIQUE (31 - 100 units)
300 West 30 Street
65 deals, representing 94% of all units
Architect: Studio C Architects
Sales: Aleksey Gavrilov and Joseph Grosso of The Gavrilov Grosso Team at Corcoran
323 Lenox Road
28 deals, representing 60% of all units
Architect: S. Wieder Architect
Sales: Roni Dotan, Jennifer Carlson, Denise Cataudella, Tara King-Brown, Nayana Pratt, and Noah Studenroth of The Dotan Team at Corcoran
H70 Condominium
27 deals, representing 63% of all units
Architect: RSLN Architecture
Sales: Salomon Danielov, Margarita Danielova, and Armend Duka of The Danielov Team at Corcoran
TOP DEALS
Central Park Tower
$63,500,000
Architect: Adamson Associates and Adrian Smith + Gordon Gill Architecture
Sales: Extell Marketing Group and Corcoran Sunshine Marketing Group
One High Line
$52,000,000
Architect: Bjarke Ingels Group and Woods Bagot
Sales: Deborah Kern and Steve Gold of Corcoran
50 West 66th Street
$45,750,000
Architect: Snøhetta and SLCE Architects
Sales: Douglas Elliman’s Janice Chang and Noble Black; Brown Harris Stevens’ Lisa Lippman; Corcoran’s Hillary Landis and Beth Benalloul
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 1/1/2024
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