Photo: Robert Clark
Falling prices helped new construction sales surge in Manhattan and Brooklyn in the second quarter.
Total sales volume rose substantially on a quarterly basis in the city’s two most popular boroughs for new construction condos, according to a new report released on Friday by New York brokerage MNS.
“The new development submarket saw an uptick in the second quarter driven by a combination of developers willing to be more flexible and making deals, interest rates are coming up which is causing people to move quicker, and contracts that have been in the works are finally closing,” MNS CEO Andrew Barrocas tells Livabl.
After a rocky first quarter, Manhattan new construction sales volume rose 34 percent quarterly to $1.477 billion in the second quarter. In the first quarter, sales volume plummeted over 36 percent as smaller sized units dominated sales. Some 63 percent of all second quarter sales were for two-bedroom and smaller-sized units.
There were 312 new construction sales in Manhattan in the second quarter, up 14.7 percent from the previous quarter. Manhattan’s Upper East Side neighborhood accounted for 16.67 percent of all new construction sales — the largest share in the borough.
Over the last year, Manhattan’s median sales price slipped 17.9 percent to a little over $3 million in the second quarter.
The Financial District (FiDi) recorded the largest quarterly upswing, with the median sale price rising over 118 percent to $3.9 million in the second quarter. At the same time, Murray Hill recorded the largest quarterly decline, with prices falling from $5.8 million to $1 million — a decline of 87.1 percent.
A penthouse at 503 West 24th Street in Chelsea that sold for over $59 million was the quarter’s highest sale.
Meantime, sales were up 37.4 percent in Brooklyn totaling $382.3 million in the second quarter. Sales volume was up 33.4 percent from the previous quarter.
Brooklyn’s median sales price fell 11.6 percent quarter-over-quarter to $997,759 in the second quarter.
The up-and-coming Boerum Hill-Cobble Hill area dominated sales, accounting for just shy of 16 percent of all Brooklyn new construction sales in the second quarter. A large percentage of sales occurred at The Nevins — a new development located at 319 Schermerhorn Street. Nineteen of the 45 Boerum Hill-Cobble Hill neighborhood sales took place at The Nevins.
The white-hot DUMBO neighborhood recorded the largest quarterly upswing. Prices rose from $2.6 million to $3 million.
And, with a sales price of over $11 million, Brooklyn Heights recorded the highest new construction sale in the second quarter.
Click here to read the entire report.
