MNS, the Brooklyn real estate firm published their second 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 Second Quarter of 2013 (04/01/13 – 06/30/13). All data summarized is on a median basis.

According to the report, we were told that there is “definitely is not a summer slow down” for real estate development. The trend is high increases in transactions with sales totaling $888 million in Manhattan and $82.7 million in Brooklyn

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:

• Total sales volume increased from $82.7 million during 1Q13 to $147.5 million during 2Q13 – representing an increase of 78%.
• In addition, the number of transactions increased 85% from 88 in 1Q13 to a total of 163 during 2Q13.
• The number of new development sales almost doubled from the previous quarter.

Brooklyn Neighborhood Highlights

• Brooklyn Heights continues to deliver the highest number of transactions (22) for the second consecutive quarter – representing an overall share of 13.5% of all new development sales within the Brooklyn Market.
• Williamsburg suffered dramatic losses in psf (-19%) and median sales price (-22%) from the previous quarter. After analyzing the transactions, a majority of the new development sales occurred within “East” and “South” Williamsburg.
• Park Slope and Greenpoint continue to offer superior returns – both on a short and long term basis. Median sale prices for Greenpoint rose 23% from the previous quarter and Park Slope saw a 19% increase as well.

MNS states, “The Brooklyn market has significantly improved in terms of total volume of sales and number of transactions. Total sales volume increased from $82.7 million during 1Q13 to $147.5 million during 2Q13 – representing an increase of 78%. In addition, the number of transactions increased 85% from 88 in 1Q13 to a total of 163 during 2Q13. Although the activity in Brooklyn was encouraging during the second quarter of 2013, the average price per square foot declined by -1.1% to $731psf during 2Q13 from $739 psf during 1Q13. However, the median sales price during 2Q13 increased by 3.7% from $702k during 1Q13 to $728k during 2Q13.”

Dumbo continues its very low inventory (especially new development) and had 7% of total new development sales in Brooklyn in Q2 2013. Dumbo had the second highest median sales price at $1,012,000 (Brooklyn Heights being the top at $1,298,268). 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.

Previously:
{2013 Q1 New Development Report for Brooklyn, 18Apr2013}