Sales Of New Condos In Manhattan Fall 40% From Prior Quarter
Just 241 contracts were signed for newly developed condo units in Manhattan last quarter, according to a new report — down 40% from the previous quarter and 30% from a year ago.
Signed contracts in Manhattan for new condo developments totaled $911M in the third quarter, according to new research from Brown Harris Stevens Development Marketing. That puts the total dollar volume around 24% below the same quarter last year and 46% below the Q2 total of $1.69B.
Chelsea saw the most signed contracts for new development condo units, raking in 34. Of those, 23 alone were signed at One High Line, the luxury condo building at 500 West 18th St., next to neighborhood tourist magnet the High Line.
There is often a slowdown during the summer, Stephen Kliegerman, president at Brown Harris Stevens Development Marketing, said in a statement.
“This, paired with increasingly low supply, very few buildings launching, and buyers still adjusting to the new mortgage rate landscape resulted in fewer contracts being signed across all boroughs,” he said.
Supply has been slow. Just five buildings totaling 91 units came to market in Q3. More than a third of these were in a newly built property at 305 East 61st St., a Lenox Hill property known as Archive Lofts that delivered 35 units.
The average price that new development contracts signed for in Manhattan also declined compared to Q2, down 10% at $3.7M. But average prices demonstrated an increase from Q3 2022, when they were $3.5M.
Overall, more condos are being sold than delivered, the report found. The number of new development units actively being marketed fell by 3.4% in Q3 compared to Q2. The market has 5,516 units of "real inventory," which includes 4,072 units of "shadow inventory" that haven't yet been released.
With 113 sales per month over the past year, that level of units on the market means Manhattan’s supply of new development condo units will last 49 months, down from almost 58 months the prior quarter.
"Even with slower sales, absorption is still outpacing new supply," Robin Schneiderman, managing director at Brown Harris Stevens Development Marketing, said in a statement.