Real Estate Weekly
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Manhattan new development sales volume sky-high in 2Q

In the second quarter in Manhattan, an onslaught of new development pushed sales volume up nearly 60 percent since the first quarter of 2015.

According to a 2Q new development report from real estate brokerage firm MNS, total new development sales volume in Manhattan jumped 59.4 percent from the last quarter, going from $771,597,078, to $1,229,848,846 in the second quarter.

Price per square foot also saw a big increase, rising 34 percent year-over-year, while median sales price increased 26 percent year-over-year.

Unsurprisingly, the neighborhood with the most new development sales in the second quarter was Midtown West, with 15 percent of the share in Manhattan.

Soho had the largest quarterly upswing in price per square foot, rising from $1,914 in the first quarter of 2015 to $3,123 in the 2Q, while median sales prices in the neighborhood had a huge increase, going from $4,476,463 to $10,818,907.

The dramatic rise in median sales price is attributed to both a low sample size of only six sponsor sales and higher-priced luxury units, like 224 Mulberry Street.

Even more notable were sponsor sales in Chelsea, which rose by 27 percent on a price per square foot basis and 93 percent on a sales price basis. These numbers are highly attributed to the 17 sales at 500 W 21st Street that closed this quarter.

Brooklyn was an entirely different tale – new development sales decreased 31.9 percent from the first quarter of 2015, which is attributed to the pre-selling of new construction buildings that won’t be completed until later this year or early next year, coupled with the overall small number of new condo inventory currently in the market. The Brooklyn neighborhoods of Carroll Gardens, DUMBO, Fort Greene, Kensington, Prospect Heights and Prospect-Lefferts Gardens did not account for any new development sales in the second quarter.

However, as new condos begin hitting the market, many of which are in Williamsburg and DUMBO, the firm expects the numbers to increase over the next few quarters, when closings are set to take place.
Total new development sales volume was down 15.2 percent, while price per square foot rose 4.4 percent year-over-year. Median sales price increased just barely year-over-year, with a 1 percent rise.

The highest new development sale in Brooklyn in the 2Q was at 2A Strong Place, Apt 1, in Cobble Hill, where a unit sold for $4,327,562. In terms of price per square foot, the highest new development sale was at 201 North 11 Street, Apt 3, in Williamsburg, where a unit went for $1,814 p/s/f.

The neighborhoods that sold the most amount of new development inventory per unit size in the 2Q were Bed-Stuy and Boerum Hill/Cobble Hill for Studios, with 4 percent, Williamsburg for one-bedrooms, with 29 percent, Bed-Stuy, Williamsburg and Park Slope for two bedrooms, with 18 percent, and Bed-Stuy and Williamsburg for units 1,500 s/f and higher, with 49 percent.

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