Photo: Robert Clark
Last year couldn’t have gone any more differently for the two most popular New York City housing markets.
A market correction at the top flattened Manhattan new construction condo prices, while a flurry of high-end sales caused prices to skyrocket across the river in Brooklyn. That’s according to a newly released report by the New York sales and research firm Halstead Property Development Marketing (HPDM).
It’s the only report in New York City to analyze contract-signed data, says the firm.
The average price per square foot for Manhattan new construction units has “essentially” been flat for the last 10 consecutive quarters. Over the last year, the average price per square foot for new units entering into contract in 2017 has risen 2.2 percent to $2,282, while prices for closed contracts on new construction units fell 2.3 percent to $2,133.
Meanwhile, the median price for Manhattan new construction units entering into contract in the fourth quarter of 2017 fell 16.1 percent year-over-year, but was up 8.3 percent from the previous quarter.
“Pricing at the top-end has continued to correct downward,” says Stephen G. Kliegerman, President of Halstead Property Development Marketing, in the report.
But homebuyers shouldn’t expect Manhattan prices to remain flat for long.
“I would expect prices in Manhattan to begin to increase for new construction product in 2018, as a number of highly anticipated quality developments come to market next year,” Kliegerman tells BuzzBuzzNews.
The Midtown West submarket recorded the largest quarter-over-quarter price growth, excluding the “Billionaire’s Row” area. The average price rose 12.4 percent quarterly to $1,961. “Billionaire’s Row” is an area around the southern tip of Central Park where many of the city’s most expensive homes are situated.
Manhattan inventory was up 18 percent annually and up 5 percent quarterly in 2017, with just over 6,400 units available for sale in total last year — including unsold inventory at “large projects such as One Manhattan Square, Waterline Square, and Gramercy Square.”
Meantime, the median price of a Brooklyn new construction unit that entered into contract in the fourth quarter of 2017 skyrocketed 73 percent annually to $1.96 million. The median price was also up 35 percent from the previous quarter.
The dramatic price surge was “due to units above $2.5 million entering contract at Pierhouse at Brooklyn Bridge Park, 51 Jay Street, and 251 First Street, showing a growing demand for luxury housing in the borough,” says Kliegerman in the report.
The average price per square foot in Brooklyn rose 9.4 percent from last year to $1,490. The fourth quarter of 2017 marked the third consecutive quarter where the average price per square foot of Brooklyn new construction units was at $1,400 or higher.
“I see Brooklyn Development continuing to elevate itself in terms of design and quality and thus expect to see continued price appreciation in 2018,” Kliegerman tells BuzzBuzzNews.
And, given the number of new developments in the pipeline as well as the quality of the developers producing them, Kliegerman tells BuzzBuzzNews that he sees “the gap between Brooklyn and Manhattan pricing narrowing in 2018 and beyond.”
Click here to read the entire report.