Market Update: September 19 to September 25
The new development condo market kept pace last week. Projects across the city reported 63 deals, on par with 60 previously, and 17 of them (30%) were luxury units.
Volume was skewed by a batch of 22 sales reported from The Cortland in West Chelsea, 10 of them asking above $4,000,000. Yet, the Related Companies condo project is nearing 30% sold in six months – impressive velocity that signals longer-term strength in the high-end market.
Mature projects are also finding the wealthy buyers they’ve been waiting for. Among the 40 sales reported in Manhattan, 520 West 28th by Zaha Hadid signed a five-bedroom residence asking $10,000,000 after several years on the market. And, similarly, Soori High Line reported a deal on a three-bed that was asking $5,950,000 bringing the project to nearly 50% sold since launching in 2014.
In this lending climate and uncertain economy, fewer owners are listing condos for sale. Lower resale inventory could be pushing buyers to look at new developments like these.
Brooklyn was the only borough to see a drop. Developers reported 14 contracts, a more than 50% decline from the week prior. However, continuing the luxury theme, one of those sales was a five-bedroom at Olympia Dumbo asking $7,895,000. Douglas Elliman Development Marketing, Eklund Gomes and Novo Team are handling sales along with Sotheby’s Heyman Team.
Queens had a strong week with nine sales bringing a 30% jump in activity. The average asking price dipped to $813,953 but price per square foot was up 6% to $1,258. Several habitual top-performers reported contracts, including Novo LIC (2), Skyline Tower (1) and Eden Condominium (1).
Astoria is arguably the borough’s hottest neighborhood right now. More condo offerings are coming to market and fulfilling demand for attainably-priced homes. Sofo Tower on 31st Ave is the perfect example. Developer Fotios & Sofia is asking $1,200 PSF on average for the 26 units and just sold a one-bedroom penthouse asking $829,000.
“While interest rates have risen and made ownership a bit more expensive, so did the cost of rental units. Many [New Yorkers] are still looking to purchase instead of renting,” said Aleksey Gavrilov, of Corcoran group’s Gavrilov Grosso Team, which is handling sales at Sofo Tower.
With buyers heading to Queens for value and wealth pouring money into Manhattan’s trophy properties, opposite forces are driving the market.