2013 Q3 New Development Report for Brooklyn


MNS, the Brooklyn real estate firm published their third 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 Thurd Quarter of 2013 (07/01/13 – 09/30/13). All data summarized is on a median basis.

The Brooklyn New Development market remained strong in terms of increased price and total sales. The number of transactions and sales volume each increased by double digits relative to the previous quarter. This upward trend was driven by a rise in the number of Three Bedroom units sold which achieved the highest Price Per Square Foot (PPSF) of any unit since the beginning of 2013.

Some highlights of the Brooklyn report include the following:

  • In Brooklyn, the median price-per-square-foot and median-sales-price have increased 12 and 7.9% respectively year-over-year. Over the last two years this means the median price per-square-foot and median sales price have both increased by 30%.
  • Quarter-over-quarter figures for the borough saw a 10.8% increase in median price-per-square-foot and a 1.7% increase for median sales price.
  • Brooklyn new development sales inventory is up 12.2% from the second quarter of 2013, while new development sales volume has increased 13.1% or from $147.3 million in the first quarter of 2013 to $166.8 million in 2013.

Brooklyn Neighborhood Highlights

  • Carroll Gardens represented over 18% of all new development sales borough-wide in Q3.
  • Clinton Hill and Fort Greene had a 25% increase in price per-square-foot in Q3. These neighborhoods have experienced a 31% and 38% increase in the last 12 months, respectively.
  • Median sales prices: High – Carroll Gardens: $1,847,500; Low – Cobble Hill/Boerum Hill: $449,433
  • Median price-per-square-foot: High – Carroll Gardens: $1,008; Low – Bed Stuy: $384
  • Largest quarterly up-swing: Clinton Hill – PPSF: $799/SF from $579/SF; Sales Price: $713K from $534K
  • Largest quarterly down-swing: Prospect Heights – PPSF: $704/SF from $840/SF; Sales Price: $586K from $735K
  • Highest New Development price-per-square-foot: Carroll Gardens – 209 Smith Street, 1B – $2,564 SF
  • Highest New Development Sale: Brooklyn Heights – 9 College Place, 1H – $3,232,943

Dumbo continues its very low inventory (especially new development) and had 7% of total new development sales in Brooklyn in Q3 2013. Dumbo’s median sales price fell from $1,012,000 (in Q2 2013) to $750,000, perhaps due to a low inventory of new development. The majority of sales went to studios and one bedrooms (54%).

For the full report, go to MNS.

{2013 Q2 New Development Report for Brooklyn, 18Jul2013}
{2013 Q1 New Development Report for Brooklyn, 18Apr2013}