Brooklyn’s new development sales plunge in Q3

Borough saw nearly 70 percent drop in volume and a 25 percent drop in median price since Q2
October 17, 2014 10:55AM

New development and sponsored residential sales in Brooklyn saw a substantial drop in the third quarter, according to a new market report out by MNS Real Impact Real Estate.

According to the report, the borough saw almost a 70 percent drop in volume and a 25 percent drop in median price since the previous quarter. The decline in sales goes together with a 60 percent decline in inventory.

Compared to the second quarter of this year, median sales pricing in the borough was down roughly 10 percent. Compared to the third quarter last year, the median price per square foot dropped almost 13 percent, while the median sales prices was 12 percent higher than in the third quarter of 2013.

Bay Ridge, Bushwick, Gowanus, Kensington and Prospect-Lefferts Gardens didn’t see any new development sales in the third quarter, according to MNS. The report stated that the decrease in the number of sponsor units is due to a slow maturation of the market in some of the borough’s more established neighborhoods. Since multiple projects are in the works, the number of available units is expected to go up in the coming months.

Brooklyn Heights saw the quarter’s biggest drop, with median prices falling 54.6 percent to $573 per square foot. Median sales prices in the area fell 69 percent to $725,503. Unit sales dropped by 16 units in the neighborhood, counting only two closed units at One Brooklyn Bridge Park at 360 Furman Street.

Meanwhile, Boerum Hill-Cobble Hill saw the biggest quarter-over-quarter hike in prices, with pricing per square foot rising 24 percent to $868 and median sales prices going up 53 percent to more than $1 million. The change in this area — which accounted for almost 6 percent of all new development sponsor sales in Brooklyn — can be explained by luxury units at 138 Sackett Street entering the market and lower-priced units at Cobble Hill Towers exiting the market. — Claire Moses