CONDO CONTRACTS SOARED 73% ABOVE THE SAME PERIOD PRE-PANDEMIC
2021 was a record-setting year for New York City’s new developments and December was the icing on the cake. 359 sponsor condo contracts were reported, marking a 52% increase from 2020 and a remarkable 73% increase from 2019 (pre-pandemic). Manhattan saw the most significant jump, with a nearly 90% increase year over year.
This strong performance also accounts for a typical holiday slump that was potentially amplified by the Omicron surge, which brought restrictions back to New York City around the holidays. The market saw a 10.7% decrease in contracts reported between December and November 2021.
“The new development market is defying the pandemic, with significant contract activity even through the holiday season,” said Kael Goodman, co-founder and CEO of Marketproof, Inc. “As we head into the New Year with a new mayor and with retail and commercial activity also trending upward, the residential ecosystem is primed for continued growth into 2022.”
DECEMBER CONTRACT ACTIVITY
Manhattan, Brooklyn and Queens
- 359 contracts reported
- $1.03B aggregate dollar volume
- 52% increase from 2020 and 73% increase from 2019
- 10.7% decrease from prior month
- $1.89M median unit price (59% increase from Dec 2020)
- $1,807 median ppsf (34% increase from Dec 2020)
MANHATTAN
Manhattan new developments reported 204 contracts last month, an 89% increase from the same period in 2020 and a 71% increase from 2019. Manhattan also saw the slightest holiday slump of the three boroughs, with a 10.5% decrease in activity between November and December.
109 East 79th Street and One Manhattan Square stood out in December, with the former inking the borough’s two most expensive deals (a $35M penthouse and a $29.8M penthouse) and the latter seeing by far the most contracts (20 compared to next top performer 130 William’s 11 contracts.)
These two projects represent opposite ends of the new development spectrum in Manhattan. Legion Investment Groups’ 109 East 79th Street is a 33-unit condo with classically-inspired design that agrees with the mature Upper East Side submarket. Average asking price per square foot is $4,368.
Extell Development’s One Manhattan Square (aka 252 South Street) is a large-scale, glassy tower that brings 814 units to the emerging and highly contentious Two Bridges district. Average asking price per square foot is $2,300.
MANHATTAN PERFORMANCE
Number of Contracts
- 204 contracts reported
- -10.53% from prior month in 2021
- +89% from Dec 2020 and +71% from Dec 2019
Volume & Pricing
- $832M aggregate dollar volume
- $2.635M median unit price (+10% from Dec 2020)
- $2,218 median ppsf (+13% from Dec 2020)
MANHATTAN TOP 3S
Top Contracts
- 109 East 79th, PH20 – $35M
- 109 East 79th, PH16 – $29.8M
- 372 West End, 15A – $25.9M
Top Closings
- 1010 Park Ave, PH Duplex – $32.7M
- 601 Washington Street, PHW – $31M
- Central Park Tower, 57E – $17.4M
Top Buildings
- One Manhattan Square – 20 Contracts
- 130 William Street – 11 Contracts
- Madison House – 11 Contracts
BROOKLYN
The 2021 recovery jumpstarted in Brooklyn and then held steady all the way through December, when 128 new development contracts were reported. The borough saw an 8% increase over the same period in 2020, which is indicative of Brooklyn showing the earliest signs of the recovery prior to 2021, and a 45% increase from 2019. The monthly activity dropped a little more than 11% from November 2021.
Median unit price jumped 63% year over year and the median ppsf of signed contracts jumped 43% from December 2020. This price trend is reflected in the month’s top contracts, which included a $7.7M penthouse deal at Forest City Ratner and Greenland Group’s 550 Vanderbilt Avenue, the final and most expensive of the development’s three penthouses.
Tishman Speyer’s habitually top-performing 11 Hoyt stood out once again in December, with 14 contracts reported, the most of any project in the borough. The Studio Gang-designed project is now 65% sold. View the stacking plan.
567 Ocean Avenue wasn’t too far behind with 10 deals reported last month, bringing the New Empire Real Estate project to 74% sold within two years of launching sales. View the stacking plan.
BROOKLYN PERFORMANCE
Number of Contracts
- 128 contracts reported
- -11.11% from prior month in 2021
- +8% from Dec 2020 and +45% from Dec 2019
Volume & Pricing
- $190.86M aggregate dollar volume
- $1.185M median unit price (+63% from Dec 2020)
- $1,309 median ppsf (+43% from Dec 2020)
BROOKLYN TOP 3S
Top Contracts
- 550 Vanderbilt, PHS – $7.7M
- One Clinton, 32A – $4.9M
- 100 Amity Street, 5A – $4.5M
Top Closings
- 168 Plymouth St, PHA – $6.8M
- One Prospect Park West, 6A – $4.98M
- One Prospect Park West, 4A – $4.68M
Top Buildings
- 11 Hoyt Street – 14 Contracts
- 567 Ocean Avenue – 10 Contracts
- Park West – 8 Contracts
QUEENS
Of the three boroughs, Queens was the only one to see an increase in activity around the holidays, with 47 reported contracts representing a 9.3% increase from November 2021. The numbers show an even more sizable uptick from December 2019: a 370% increase in the number of contracts signed, a 470% increase in the aggregate dollar volume of signed contracts, and a 76% increase in median unit price, while the median ppsf inched up 5%.
New development contract activity in Queens is always far below the levels in Brooklyn and Manhattan because the borough has fewer new developments in progress. However, there is one project that is arguably the market-maker: Skyline Tower (aka 3 Court Square).
Developed by Risland US Holdings, United Construction & Development and FSA Capital, the 67-story 801-unit tower swept Marketproof’s top 3 list in December with the borough’s most expensive contract (a $2.1M two-bedroom), the third most expensive closing (a $1.837M two-bedroom closed for full ask), and the most contracts signed of any building (35 deals reported). Skyline Tower is 52% sold since sales started in 2019. View the stacking plan.
QUEENS PERFORMANCE
Number of Contracts
- 47 contracts reported
- +9.3% from prior month in 2021
- +124% from Dec 2020 and +370% from Dec 2019
Volume & Pricing
- $54.3M aggregate dollar volume
- $1.2M median unit price (+26% from Dec 2020)
- $1,476 median ppsf (+18% from Dec 2020)
QUEENS TOP 3S
Top Contracts
- Skyline Tower, 3111 – $2.1M
- Prime LIC, PHD – $1.88M
- Blvd Queens, 6A – $1.65M
Top Closings
- 5 Court Square, 11A – $2.4M
- Corte, PHI – $2.1M
- Skyline Tower, 5202 – $1.84M
Top Buildings
- Skyline Tower – 35 Contracts
- Blvd Queens – 5 Contracts
- The Alexandra – 2 Contracts
Report Methodology
- 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
Photo courtesy of Skyline Tower
