MNS, the Brooklyn real estate firm published their first quarter 2013 Brooklyn New Development Market Report (pdf). MNS’ New Development Market Report tracks the market trends with a quarter-over-quarter and year-over-year comparison throughout Brooklyn on both a citywide and neighborhood basis. New development data was compiled from the Automated City Register Information System (ACRIS) for sponsor sales that traded during the First Quarter of 2013 (01/01/13 – 03/31/13). All data summarized is on a median basis.
Included in this research are walk-up and elevator new development condominium buildings, as well as new conversion condominiums if the sales were applicable sponsor transactions. Excluded from the report are all cooperative sales.
Some highlights of the Brooklyn report include the following:
- Low inventory continues to influence the market, Brooklyn new development sales were down 98.86% from last quarter.
- Low inventory translated to higher prices per square foot; PPSF prices rose 8.0%, from $684 ppsf during the past quarter to $739 during the current quarter.
Brooklyn Neighborhood Highlights
- Brooklyn Heights has the highest inventory in Brooklyn at 38%.
- Clinton Hill had a majority of units trading over the $600K price range – considerably higher than the $505,000 median sales price during 4Q12
- Downtown Brooklyn was able to generate a median sales price increase of 21% since the previous quarter. More specifically, the BellTel Lofts at 365 Bridge Street closed the quarter with total new development sales just under $8 million, representing 8.6% of all sponsor sales throughout Brooklyn.
MNS states, “Continuing the negative trend from the previous quarter, total volume of new development sales in the Brooklyn market decreased from $146 million to $83 million. In addition, a total of 88 transactions closed during the current quarter, as compared with 175 during the previous quarter. Low inventory continues to influence the market, especially in boroughs such as Bay Ridge, Fort Greene, Gowanus and Kensington where no new development sales occurred”
According to the US Census Bureau, and as mentioned by the Bloomberg Administration, “more people are moving into NYC than are moving out for the first time since 1950”. Furthermore, “the largest percentage change occurred in Brooklyn, where the population grew by 2.4%”, representing a total of 60,900 people. In addition, the availability of low interest rates, strong rental market, and inexpensive land prices as compared to Manhattan, over 70% of all new developments in NYC are scheduled to enter the Brooklyn market.”
Dumbo continues its very low inventory (especially new development) and had 3% of total new development sales in Brooklyn in Q1 2013. However it had the highest median sales price at $1,065,000. As the larger condo units are sold later this year at 185 Plymouth and Dumbo Townhouses, the median prices and price per square feet will increase.
For the full report, go to MNS.