New York City’s new development market has gained momentum in August, even with last week’s 30% drop in contracts. Condominium projects reported 50 new sales between August 15 and 21, a 32% increase from the month’s first week, which saw 38 contracts, the lowest figure since December 2020.
So what’s up with the recent 30% dip? Marketproof’s latest report follows an anomaly in the second week of August when two developments reported unusually large batches of sales that were likely signed earlier on. Those transactions accounted for 30% of the city’s total volume (72). Look past them and we see two consecutive weeks of at least 50 sales, in line with August 2019’s average of 52. The market has been steadier than you think.
The luxury tier, however, is slowing after two quarters of strong activity. Nearly 95% of last week’s sales were below $4,000,000. The average asking price dipped to $1,596,979 (-33%) and the average asking price per square foot was down to $1,632 (-7%).
Manhattan developments reported 25 deals averaging around $2,300,000 and $2,055 per square foot. The West at 547 West 47th Street – last week’s top-performing project – hits that pricing sweet spot. Developer CBSK Ironstate reported four contracts at the move-in ready condo for studios and one-bedrooms ranging from $995,000 to $1,155,000. Asking prices in the building, which touts livable luxury homes with “all the desired” amenities in a prime location, are averaging $2,021 per square foot.
“The high sales velocity we’ve seen at 547 West 47th Street, especially during the traditionally quiet summer months, speaks volumes about what the visionaries behind this building have created,” said Scott Shnay, a principal at CBSK Ironstate, who is working with Corcoran Sunshine Marketing Group on sales.
Brooklyn’s 17 contracts reflect a decline in average prices, suggesting buyers in the boro are seeking more for their dollar. The average asking price was down nearly 50% to $917,823 while the asking price per square foot was down over 20% at $1,194.
H7, a 38-unit condo at 623 Avenue H in Brooklyn’s Midwood neighborhood, was the boro’s top-performing development. The project reported four deals: a one-bedroom asking $470,000 and three separate two-bedrooms including a penthouse asking $700,000. Asking prices in the building are averaging $988 per square foot, well below Brooklyn’s second quarter average of $1,287, which positions H7 as a value proposition.
“We have buyers coming into our showroom, and then going to other open houses for the next 2-3 weeks, comparing, and then coming back to us with offers,” said Salomon Danielov, founder of Danielov Team at The Corcoran Group, which is handling sales for H7.
“It’s truly a remarkable project, with beautiful finishes, all the modern amenities and at a great value for Brooklyn,” Danielov added.
Queens had its fourth consecutive week of increased sales activity, with 8 new contracts, up from 7 the week before. The average asking price increased slightly to $870,000 (+3.7%) while the average asking PPSF was down to $1,063 (-17.2%). Two projects stood out with multiple sales: 10-64 Jackson Ave signed a one-bedroom asking $750,000 and a three-bedroom asking $1,795,000 while 1671 Summerfield St in Ridgewood inked two one-bedrooms asking $499,000 and $549,000.
It’s likely activity will drop at the end of August as buyers power down for Labor Day weekend, which has been the case every year since 2015. But all things considered – inflation, higher rates, economic uncertainty, political conflict, etc. – New York City’s new developments market has performed better this month than many anticipated.