Market Update: October 3 to October 9, 2022
New development condo sales dropped nearly 30% week over week and 60% below 2019 norms. Forty sales were reported across 28 buildings, compared to 100 deals in the same period pre-pandemic. Three of them were asking above $4 million, putting the luxury tier right on target with pre-pandemic figures.
Manhattan had 16 contracts (-33%), Brooklyn had 19 (-17%), Queens had 5 (-44%).
To be fair, real estate agents didn’t have a full week to transact with Jewish holiday Yom Kippur falling on Wednesday and then a quiet Friday leading into the three-day weekend.
Yet despite diminished activity, prices overall trended upwards due to strength at the higher-end. The average contract was 8% more expensive, up to around $2 million and $1,637 per square foot (+3%).
The two most expensive sales were both signed at 1228 Madison Avenue, a boutique condominium designed by all-star duo Robert A.M. Stern Architects and Kelly Behun for interiors. Developer CBSK Ironstate sold homes asking $11.2 million and $8.7 million. Compass Development Marketing Group is handling sales with Philip Scheinfeld and Jim St. André.
Manhattan projects One Wall Street and Greenwich West also reported multiple contracts.
In Brooklyn, 567 Ocean Ave had deals on three studios asking between $399,000 and $490,000. Habitual top-performers Salvation Lofts at 10 Quincy St and Quay Tower both notched two more sales last week.
Located in Brooklyn Heights right at Pier 6, Quay Tower is a market-definer among the boro’s growing set of ultra-luxury developments. In 2020, when Douglas Elliman was handling sales, the project set a condo price record with a $20.3 million penthouse sale and has consistently churned out luxury deals ever since – including including a $3.8 million sale last week.
SERHANT. is now onboard, bringing Quay Tower to 54% sold with agents Jim Hayes and Brad Mohr. Jennifer Alese, SERHANT.’s Director of New Development, says their marketing efforts highlight the Brooklyn Bridge Park location and “truly breathtaking” waterfront views. And apparently it’s an easy sell.
“It’s quite compelling as evidenced by continuous record-breaking sales,” she said.
While activity was down overall in Queens, the boro had the highest jump in average asking prices: up to $795,600 (+11%) and PPSF was also slightly higher at $1,091 (+13%).
11-16 Main Ave was the top performer by contract volume with two sales, one-bedroom homes asking around $700K. Compass is handling sales with Tim Rothman, Shawn Sellick and Kaci Kaplan.
10-64 Jackson Ave in Long Island City and two Astoria projects 14-40 31st Ave and 30-37 32nd St also found buyers.
Declining contract volume is the trend to watch in October alongside growing momentum in the luxury tier. With the early fall holidays now behind us, next week will be a real test for the market as mortgage rates are nearing seven percent.
