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New York

New dev contracts cap boom year with $1B December

Buyers signed deals for 341 new development condos, down from November but up significantly from 2019, 2020

Kael Goodman, founder and chief executive officer, Marketproof, in front of an illustration of the Skyline Tower (Marketproof, Skyline Tower, iStock)
Kael Goodman, founder and chief executive officer, Marketproof, in front of an illustration of the Skyline Tower (Marketproof, Skyline Tower, iStock)

New development contracts finished the year with a slight holiday dip, capping off a promising 2021.

Buyers signed contracts for 341 new development condos across the city in December, according to a monthly analysis by Marketproof, a 15 percent decrease from November’s 413 deals. The 341 units were asking a combined $1.03 billion.

Still, contract activity was up 44 percent from December 2020 and 65 percent from December 2019, a sign that the market has more than recovered from its pandemic slump. The median last asking price was $1.9 million, or $1,807 per square foot — a 34 percent year-over-year jump.

“As we head into the New Year with a new mayor and with retail and commercial activity also trending upward, the residential ecosystem is primed for continued growth into 2022,” said Marketproof CEO Kael Goodman, who authored the report.

As usual, Manhattan led the five boroughs in deals. Its 204 contracts reported in December represented a 71 percent jump from pre-pandemic levels, but an 11 percent decrease from November. The two most expensive deals were at Legion Investment Group’s 109 East 79th Street, where a pair of penthouses that went into contract were asking $35 million and $29.8 million, respectively

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Meanwhile, the pens practically ran out of ink at Extell’s One Manhattan Square, where 20 contracts were signed. Notable closings included a penthouse duplex at Extell’s 1010 Park Avenue for $32.7 million and penthouse at Shibumi Development’s 601 Washington Street for $31 million.

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Brooklyn notched 128 new development contracts, a 45 percent increase from December 2019. The median unit had an asking price of $1.2 million, or $1,309 per square foot.

In Queens, activity fell by a third month over month, but remained 190 percent above pre-pandemic levels. Skyline Tower, Risland US Holdings’ 67-story behemoth in Long Island City, drew both the most contracts, with 17, and the most expensive contract in the borough, for a unit asking just under $2 million.

Numbers may be slightly down as the holidays left fewer days for dealmaking, but there’s little reason for developers to fret, according to Goodman.

“Numbers are still really elevated, and we can expect it to continue,” he said.

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Condo MarketDevelopmentExtell