New York City’s new development market had some headline-catching deals this spring, but ultimately came up short in May.
Last month saw 196 new development contracts, down from 237 reported in the same time last year, according to Marketproof’s monthly report. The drop in contracts was driven by contracts for homes asking under $4 million reaching a 17-month low.
“Something – whether it’s tariffs, rates, tightening inventory, or a list of other possible concerns – is causing hesitation among those buyers,” wrote report author Kael Goodman.
Manhattan was hit the hardest. It saw 94 contracts signed, down from 138 during May last year and 138 signed last month. The median sale price was $3.5 million and the median price per square foot was $2,250.
The best-selling building in the borough last month was Naftali Group’s The Willow at 201 East 23rd Street, which inked eight deals for units priced up to $4.9 million. The 69-unit boutique in Gramercy launched sales with Compass Development Marketing Group in March.
Inventory could again be the culprit, according to Corcoran Sunshine Marketing Group’s Ryan Schleis, who said the comparable resale market outperformed last May. That discrepancy might be attributed to a limited number of new launches, and many of those launches not reporting sales, he said.
The buildings that sold well last May “are buildings that all have been on the market for a couple years,” Schleis said. “Now they’re running out of stuff to sell, and there hasn’t been another thing to come on and sort of spur that demand.”
Sponsor sale numbers are also likely taking a hit because the one building that has generated a ton of interest, 80 Clarkson, has yet to report any contract numbers for its 112 residential units despite rumors that the building has approached halfway sold since launching sales just months ago.
Given May is one of the year’s strongest months, the underperformance is “certainly a point of concern,” Schleis added.
Brooklyn suffered less of a slowdown with 76 contracts signed in May, compared to 79 last year. The median sale price was $1.3 million and the median price per square foot was $1,330.
The top-selling project was another Naftali Group development, Williamsburg Wharf, which saw five contracts signed last month. The Serhant team selling One Williamsburg Wharf, the condo component of the waterfront project, has put over 50 percent of the building’s 89 units into contract, and Goodman previously told The Real Deal that the building “could be pretty much spoken for by the end of the year.”
The borough added 88 new sponsor units across nine projects.
In Queens, two projects combined for eight of the 26 contracts signed in May. Century Development Group’s Vesta, which is being sold by the Kayla Lee Team at Serhant New Development, netted four contracts. The Nuson Vernon, developed by NuVerse Advisors and Sunlight Development, also signed four deals.
Queens was the one borough to outperform last May, when 20 contracts were signed.
Read more
Naftali’s One Williamsburg Wharf rides Brooklyn new dev wave
Zeckendorf’s secretive 80 Clarkson releases 16 more units
No new launches? No problem for new dev market
