In Manhattan’s “polarized” market, resi developers are getting rocked

Overall sales fell 2.7 percent in the first quarter

TRD New York /
Apr.April 02, 2019 08:00 AM

New development closings had the lowest market share in four-and-a-half years (Credit: iStock)

As new development sales continue to struggle, Manhattan resales are getting a boost.

Elliman Charts

(Credit: Miller Samuel)

The overall number of sales closed in the first quarter dipped 2.7 percent versus a year earlier while the median sales price fell 0.2 percent, according to Douglas Elliman’s latest market report. Among new development properties, sales volume tumbled 39.4 percent, as the median price ticked up 3.4 percent.

New development closings had the lowest market share in four-and-a-half years, the report said.

“The market’s essentially been consistent with a steady erosion of sales volume,” said Jonathan Miller, CEO of appraisal firm Miller Samuel and author of the report.

In the resale market, the number of sales closed rose 2.2 percent year-over-year, with the median sales price climbing 3.4 percent to $997,750. That was a new record and the eighth straight quarterly increase. The market is “polarized,” Miller said, largely due to differing inventory trends in new development versus resales, where units don’t typically come to market in bulk.

Inventory increased and sales slowed for six consecutive quarters.

“The key characteristic is that the pace of the market is cooling,” Miller said. “Supply keeps growing and buyers have had an elevated sense of uncertainty” about things like financial market volatility and the proposed pied-à-terre tax — which ultimately didn’t pan out, though a one-time transfer tax was added.

Ken Griffin’s record $238 million purchase at 220 Central Park South skewed the pricing average in the report. During the quarter, the average sales priced was pushed up 9.8 percent to $2.1 million.


Related Articles

arrow_forward_ios
Zillow CEO Rich Barton (Credit: iStock)

Zillow and Opendoor aren’t making much on home-flipping

This week, the State Department of Taxation and Finance issued a new memo that notably made no mention of condos. (Credit: iStock)

Regulators quietly change stance on condos in LLC law

Realogy CEO Ryan Schneider (Credit: iStock)

Realogy’s plan to stop the iBuyers from gaining a foothold in Chicago

Daily Digest Thursday

Worker killed at Lam Group construction site, Uber signs WTC lease: Daily digest

Developers are offering to pay the increased mansion and transfer taxes to give them an edge in a difficult market. (Credit: iStock)

Amid slow sales, developers give buyers a break on mansion taxes

Triplemint’s David Walker and John Scipione with Hoboken, New Jersey (Credit: iStock)

Triplemint expands to New Jersey

Brokerage firms are strategizing ways to make up losses after the cost of application fees was capped at $20. (Credit: iStock)

Brokerages on rental application fee cap: “It hurts”

Alex Rodriguez (Photos by Guerin Blask)

A-Rod is coming for NYC and SoFla real estate

arrow_forward_ios