Market Update: October 10-16
New development condo sales declined for the fourth consecutive week, this time dropping 17.5%. Projects across the city reported 33 contracts compared to nearly double at the height of September.
But eight of those deals were for homes asking more than $4 million, a nearly 170% increase in luxury activity from the previous week. As New York City’s new dev condo market slows down from the unusually active summer, luxury continues to be the bright spot – specifically in Manhattan.
Manhattan was the only boro to hold steady 16 sales, mirroring the previous week. Brooklyn had 14 (-26%) and Queens had 3 (-40%).
Selene located at 100 East 53rd Street had one of the week’s priciest contracts, signing a three-bedroom residence asking nearly $9M. Brown Harris Stevens New Development Marketing recently took over sales and, after recalibrating prices, is winning over buyers with the message that you can have world-class design with Billionaire’s Row-style services and amenities for a better price.
“We set out to create an unprecedented value for buyers looking for a Pritzker Prize-winning level of design, beautiful finishes and five-star amenities in the ‘Billionaires’ Row’ area, and it has been incredibly gratifying to see such an enthusiastic response from buyers and brokers,” said Robin Schneiderman, Managing Director of Brown Harris Stevens Development Marketing, emphasizing the Foster + Partners architecture.
This is a strong message and having that clear point of distinction is critical in a market like today’s.
That’s likely a factor for Post House in Boerum Hill, averaging more than three monthly contracts even though it’s priced high for the neighborhood at $1,497 PSF.
A brand new condo inspired by local history (i.e. the former art deco post office that one stood at the site) and all the must-have amenities, Post House has the allure of a residence that honors Brooklyn’s rich past but built ground-up for today.
“Post House is design-forward and also exceedingly livable,” said Tamara Abir of the Tamara and Noah Team at Compass, leading sales at the project. “The location is super convenient and the unique garden entryway provides a quiet respite in the heart of Brooklyn. The layouts are thoughtful and gracious, the amenity package is robust, especially for a boutique building. The light and views are just spectacular. It’s a very special building that checks a lot of boxes for buyers.”
While there’s no denying the market is slowing down, new developments with the right offering (and the right price) are selling well. The pace of deceleration is the metric to watch in the coming weeks, especially if volume dips well below pre-pandemic. October 2019 did have two weeks with volume in the 30 to 40 range, comparable to what we’re seeing now, so New York City is still hovering near pre-pandemic norms.