Photo: Robert Clark
The fourth quarter of 2017 was a mixed bag for the NYC new construction submarket.
While Manhattan and Brooklyn homebuyers saw sale price declines, total Manhattan sales fell despite the slight relief in pricing, according to a report released yesterday by NYC brokerage MNS.
Over the last year, the median price of a Manhattan new construction home decreased 8.3 percent to $2.9 million in the fourth quarter of 2017. However, this was up 22.8 percent from the previous quarter. At the same time, the median price per square foot fell 6.2 percent to $1,916.
“The increase in median price over the quarter was largely the result of increases in larger unit sales in areas where there were very few last quarter,” MNS CEO Andrew Barrocas tells BuzzBuzzNews.
Some 80 percent of fourth quarter sales in the Chelsea neighborhood were in the two-bedroom and larger submarket, whereas there were no recorded sales in that submarket during the previous quarter. Similarly, in both the SoHo and Harlem neighborhoods, sales in the two-bedroom and larger submarket drove sales in the fourth quarter.
In SoHo, 100 percent of fourth quarter sales were in the two-bedroom and up submarket, compared to 67 percent in the previous quarter. And, in Harlem, two-bedroom and larger units accounted for 62 percent of all sales, up from 30 percent in the third quarter.
Boroughwide, three-bedroom and larger units accounted for 38 percent of all sales, while two-bedrooms made up 33 percent in the fourth quarter.
The number of new construction sales in Manhattan fell 15.5 percent quarterly while sales volume rose 4.8 percent to $1.7 billion in the fourth quarter.
Sales in Manhattan’s Upper West Side accounted for 28 percent of all sales in the borough.
Meantime, after falling in the two previous quarters, Brooklyn sales volume increased 11.5 percent quarterly to $279 million in the fourth quarter.
The median sales price plunged 19.2 percent year-over-year to $987,475, but was up 3.3 percent from the previous quarter.
“The dip in sales price was largely the result of new buildings coming to previously less established areas with limited condo inventory,” Barrocas says.
For example, 95 percent of sales in the Williamsburg neighborhood in the fourth quarter of 2016 were from developments in North and South Williamsburg, areas situated closer to the waterfront. But this quarter, over 50 percent of sales were from developments farther away from the waterfront and even into East Williamsburg, Barrocas explains.
Williamsburg was Brooklyn’s hottest neighborhood in the fourth quarter, account for 14 percent of all sales.
And, similar to Manhattan’s Chelsea neighborhood, Park Slope saw a 12 percent boost in the median sales price due to increased sales in the two-bedroom and larger submarkets in the fourth quarter. Park Slope recorded the largest uptick in pricing boroughwide in the fourth quarter.
Click here to read both reports in their entirety.