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FiDi new developments pick up momentum

2021 ANALYSIS OF NEW DEVELOPMENT SALES IN MANHATTAN’S FINANCIAL DISTRICT SHOW CONDO GLUT EASING

Manhattan’s Financial District (FiDi) has the most unsold condominium units of any neighborhood in New York City, but steady sales in 2021 are chipping away at the supply. FiDi new developments have reported 155 contracts in the first 11 months this year, a 61% increase from 2020 that has resulted in a 10.2% decrease in inventory.

FiDi is a commercial-centric hub with market conditions and challenges that are similar to Midtown Manhattan and yet this submarket has seen a significant recovery in 2021 based on activity from January through November. Marketproof conducted a study of all sponsor controlled developments with an accepted offering plan in FiDi inclusive of the Seaport area, identifying increased performance across the board: a 21% jump in average unit price of signed contracts, 105% jump in aggregate dollar volume, and a 14% increase in average price per square foot.

“FiDi is experiencing a domestic buyer-fueled recovery in line with what we are seeing on the Upper East and Upper West sides of Manhattan. As a globally recognized district, FiDi also has potential to attract international buyers, so it will be interesting to see if and how the return of that audience impacts growth in 2022,” said Kael Goodman, co-founder and CEO of Marketproof, Inc.


SUMMARY

While the Financial District holds the most new condo inventory of all submarkets in NYC, the number of unsold units has steadily declined as a result of accelerated sales in 2021. When compared to previous years, the Financial District has seen marked improvement in several key metrics this year.

Compared to the first 11 months of 2020

  • +61.46% in number of contracts signed
  • +105.45% in aggregate dollar volume of contracts
  • +14.3% in average price / sq ft
  • +20.87% in average unit price

Compared to the first 11 months of 2019

  • +63.16% in number of contracts signed
  • +98.81% in aggregate dollar volume of contracts
  • +5.93% in average price / sq ft
  • +15.68% in average unit price

One Wall Street, which recently launched sales and has already reported contracts, accounts for nearly 50% of the condo inventory in the area. 130 William, since launching sales 3 years ago, reported 55% of all sales (99 of 180 units) from January to November this year.


CONTRACTS SIGNED BY YEAR


Compared to the first 11 months in 2019, the Financial District had a 63.16% increase in the number of contracts reported in 2021.

Compared to the first 11 months in 2020, the Financial District had a 61.46% increase in the number of contracts reported in 2021.

The number of contracts reported for the first 11 months of 2021 was 155 compared to 95 and 96 in the first 11 months of 2019 and 2020.

The increased contract activity this year is consistent with the new development market as a whole.

CONTRACT DOLLAR VOLUME BY YEAR


Compared to the first 11 months in 2019, the Financial District had a 98.71% increase in the number of contracts reported in 2021.

Compared to the first 11 months in 2020, the Financial District had a 105.45% increase in the number of contracts reported in 2021.

Total dollar volume reported for the first 11 months of 2021 was $499M compared to $251M and $243M in the first 11 months of 2019 and 2020.

The increase in dollar volume is greater than the increase in number of contracts, signaling a demand for higher priced units in 2021.

CONTRACTS SIGNED BY UNIT TYPE


Compared to the first 11 months in 2019, the Financial District had an increase in the number of contracts reported across all unit types in 2021.

Notably 2 bedrooms accounted for the largest share of sales in both 2019 and 2021, 45% and 42.9% respectively.

Studios and 4+ bedrooms saw the greatest percent increase at 100% and 120% for the first 11 months of 2019 vs. 2021.

AVERAGE UNIT PRICE


Compared to the first 11 months in 2019, the Financial District had a 15.68% increase in average unit price in 2021.

Compared to the first 11 months in 2020, the Financial District had a 20.87% increase in average unit price in 2021.

The average unit price for the first 11 months of 2021 was $3.01M compared to $2.64M and $2.53M in the first 11 months of 2019 and 2020.

 

AVERAGE PRICE / SQ FT


Compared to the first 11 months in 2019, the Financial District had a 5.93% increase in average price / sq ft in 2021.

Compared to the first 11 months in 2020, the Financial District had a 14.13% increase in average price / sq ft in 2021.

The average price / sqft for the first 11 months of 2021 was $2,003 compared to $1,890 and $1,755 in the first 11 months of 2019 and 2020.

 

AVERAGE PPSF BY UNIT TYPE


With the exception of 1 bedrooms, the Financial District saw an increase in average price / sq ft across unit types.

Most notably 4+ bedrooms unis saw the greatest percent increase in average price / sq ft at 50%.

1 bedrooms saw a decrease of 22.99% in price / sq ft in the first 11 months of 2021 when compared with the same period in 2019.

 

Report Methodology

  • Prices are based on the last asking price before a unit was put into contract
  • Projects are sponsor stage (sponsor controlled) that are eligible to sell units
  • Prices are based on the last asking price before a unit was put into contract

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