New Development Condo Contracts Spiked Last Month

Residential buyers are snapping up new condominiums in New York City, with the number of contract signings jumping more than 100% year-over-year.

Some 421 contracts on new development condos were signed in August, The Real Deal reports, citing data from real estate analytics company Marketproof. Most of the deals were inked for new apartments in Manhattan and Brooklyn, per the publication.

“We had another amazing, amazing month,” Marketproof CEO Kael Goodman told TRD. He said he had noticed the pace of contracts slowed in July, but the number of signings picked up significantly in August.

“No Delta dip,” he said.

There has been widespread concern about the coronavirus returning and slowing the city's recovery, but it appears not to have affected the residential sales market.

The number of contracts signed represents a 109% jump from August last year and an 88% increase from August two years ago. It was the fourth-busiest month since 2015, a year that is widely considered to be the market peak. The condo resale market actually slowed in contract signings from last month, however.

It has been a particularly rough couple of years for the high-end and new development market in New York City, with a rush on luxury buildings meaning supply had flooded the market. Policies like 2019’s mansion tax and rent reform were also considered to be cold water on the market.

But in recent months there have been green shoots in the residential rental market. Rents are still depressed, about 10% down on pre-pandemic levels, but have improved significantly from earlier in the pandemic. Apartment lease signings have picked up significantly, reaching record highs last month.

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