Market Update: November 21 – November 27, 2022
New development condo sales declined 21% the week of Thanksgiving. Holidays almost always bring a lull in activity because agents lose days for transacting. This is normal.
How did Thanksgiving 2022 compare to years past? Sponsors reported 34 deals across 30 buildings. The same period in 2019 (pre-pandemic) had 54 while 2021 saw 61, and at the time it was a 41% drop.
Average prices were down almost 25% last week, even though there were more luxury deals. Eight sales were reported above $4M, up from six the week before.
Trophy properties in blue chip neighborhoods continue to sell well, despite the broader market conditions. In this week’s Marketproof New Dev & Condo report, 150 East 78th Street on the Upper East Side was featured as a top project of 2022 because it sold out within two years.
This 25-unit residence is among several Manhattan condos designed by Robert A.M. Stern that are performing well.
“The combination of RAMSA breaking out of their comfort zone, the true French sensibility of Robert Couturier’s designs, amenities that felt fun and luxurious and a developer who was willing to do something very special, in a highly desirable location, was the recipe for the success of this beautiful jewel of a building,” said Alexa Lambert with the Compass sales team at 150 East 78th Street.
Yet, it’s not only the established luxury enclaves that are seeing strong activity. For example, Crown Heights is becoming Brooklyn’s new hot bed for residential development.
111 Montgomery, located right near Prospect Park, is the neighborhood’s first full-service new condominium. Last week the 162-unit development signed a three-bedroom asking $1.7 million at $1,416 per square foot.
For context, the average price for a three-bedroom in Crown Heights is $986,000 and $723 per square foot.
“Just like Williamsburg and other Brooklyn neighborhoods before it, Crown Heights has evolved in recent years from a value play to a prime destination for luxury buyer,” said Tamara Abir of Compass, who is leading sales at 111 Montgomery.
“At over 70% sold, sales continue to outperform the rest of the market. Savvy buyers are drawn to the fantastic amenities and design-forward spaces as well as proximity to Prospect Park, great restaurants, and easy subway access,” she added.
According to data from Marketproof Pipeline, there are more than 200 residential developments currently in pre-development and construction in Crown Heights. This is a neighborhood to watch in 2023.
