By Roland Li
Prices of new development sales rose modestly in Brooklyn and Manhattan in the second quarter, according to two reports released last week by MNS.
Manhattan condo sales were up 6% to $1,238 per s/f, up from $1,185 per s/f in the second quarter of 2010. The average sales price increased to $1.85 million, up from just under $1.6 million in the second quarter of 2010. Compared to the first quarter of 2011, price per s/f was down 3% and average sales prices were flat.
“I think there’s been a lot of confidence in the Manhattan market,” said Andrew Barrocas, president of MNS. “We find things going into contract very quickly.”
He cited low interest rates and the improving economy as drivers of the market. But even if interest rates rise, Barrocas said that low inventory rates and aggressive bids indicated that the market would remain healthy.
Stand-out developments included 15 Union Square West, which saw many closings, and a $13 million closing at 141 Fifth Avenue, increasing the Flatiron average price by 50% compared to the first quarter. The Karl Fischer-designed 263 Bowery, a seven unit building, brought the Lower East Side’s price per s/f over $1,000, a 19% increase compared to the first quarter.
There was a 20% more sponsor sales compared to the last quarter. The Financial District had the most sponsor sales, encompassing 16% of the entire market.
In Brooklyn, price per s/f was up 2% to $560, up from $548 in the second quarter of 2010. Average sales price was up 10% from $568,000 to $634,000.
Notable closings included six sales at the Knick in Bushwick, which averaged $460 per s/f. The $3.3 million penthouse sale at Richard Meier’s On Prospect Park boosted price per s/f in the Prospect Heights submarket to $1,088.
Fourteen closings at the Prospect Building in Crown Heights averaged $570 per s/f, while MNS closings at the Edge in Williamsburg increased the average price per s/f to $710 in the neighborhood. The Edge is now 70% sold, said Barrocas.