NYC’s New Development Market Slows in July

Top Projects: The Narrows, Salvation Lofts, One Manhattan Square

Sales activity at new development condos in New York City has dipped below pre-pandemic norms for the first time in 2022. Marketproof’s July report shows a 28.5% drop in monthly sponsor contracts with 188 deals reported across 96 buildings city-wide, 37% lower than the same period in 2019 (pre-pandemic) and slightly below 2020 levels (-2%).

Manhattan projects reported 99 contracts (-28%), Brooklyn had 66 (-27%) and Queens had 23 (-38%).

While contracts were down, the median unit price increased 6.3% from June to $1,695,000, reflecting stronger performance in the luxury tier. Nearly 20% of July’s contracts were above $4,000,000 including two big ticket deals on Billionaire’s Row: a $13,245,000 condo at 53W53 and a $21,000,000 penthouse at 111 West 57th Street. The city’s median price per square foot was $1,681, a slight 5.2% decrease from June yet 13% higher than pre-pandemic.

July also brought three significant closings at Aman New York Residences, including the year’s most expensive sale at $75,891,560, which equates to $11,161 per square foot – well above Manhattan’s Q2 average of $2,220 per square foot.

“July threw some curveballs, between volatility in the stock market, crypto crashes, high-profile layoffs, ongoing inflation and a heat wave – and that’s what the contract volume is reflecting,” said Kael Goodman, co-founder and CEO of Marketproof, Inc. “But the luxury tier still has a steady pulse so developers may start discounting their inventory above $4M to capture those buyers and keep up the momentum.”

The month’s top performing projects included two Brooklyn condos: The Narrows in Bay Ridge reported 8 deals and The Salvation Lofts at 10 Quincy Street in Clinton Hill had 7. One Manhattan Square in Two Bridges ranked third in the city with 6 deals, more than any other building in Manhattan.

Located at 9956 3rd Avenue in Bay Ridge, The Narrows is a 40-unit condo where asking prices range from $675,000 to $1,350,000, averaging $978 per square foot compared to the boro’s Q2 average of $1,286. Already 63% sold since launching sales earlier this year, the Simino Architects-designed residence is a rare and well-priced offering in this part of Brooklyn.

“Bay Ridge has relatively low inventory in the luxury new development condo arena. The Narrows not only scratches that itch, but it does so admirably with premium interior finishes and common amenities, namely the stunning rooftop pool,” said David Fernandez of residential brokerage SERHANT, who is handling sales for The Narrows. “In addition to that, this is a prime location in the area, just a stone’s throw away from the waterfront, which locals put at the top of their list. This project is special in all the right ways: high-end design, desirable common amenities, and a top notch location!”

Buyers at the entry-level are seeking out value with projects in up-and-coming neighborhoods and that is expected to continue as higher mortgage rates, inflation and overall economic uncertainty continue to weigh on the market.