Brooklyn New Development
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Brooklyn | New Development Market Report | Q2 2020 Brooklyn New Development Due to the global pandemic and the resulting lockdown, new development sales in Brooklyn fell sharply from the same time last year. From April through part of June, construction was halted and in-person showings were prohibited. Thus, active listings inventory dropped 10.6%. And while sales activity was down 30.5% from Q2 2019, it was down by 12% from Q1 2020. A positive sign that the market is ready to rebound is that the new development price figure is trending upward compared to Q1 2020. With less inventory on the market, the average sales price per square foot hit record highs and the median sales price was up 18.2% from Q1 2020. Brooklyn Highlights Year-Over-Year Prices Sales Marketing Time • While the median sales price decreased –20.3% –30.5% 37.4% 20.3% from Q2 2019, it increased 18.2% median sales price closed sales days on market from Q1 2020. • The number of closed condo sales decreased Pace Inventory Negotiability 30.5% from Q2 2019 and declined 12% from Q1 2020. 74.0% 58.0% –2.5% • Listed inventory dropped 10.6% from Q1 2020. months of supply active listings listing discount Brooklyn New Development Condos Market Matrix Q2-2020 ∆ CHN (QR) Q1-2020 ∆ CHN (QR) Q2-2019 Average Sales Price $1,408,476 16.6% $1,207,766 –9.9% $1,563,776 Average Sales Price Per Square Foot (PPSF) $1,395 7.6% $1,296 3.6% $1,347 Median Sales Price $999,000 18.2% $845,522 –20.3% $1,252,751 Number of Sales 139 –12.0% 158 –30.5% 200 Recorded Sales Days on Market (DOM) 312 5.1% 297 37.4% 227 Listings Inventory 387 –10.6% 433 58.0% 245 Absorption Rate (in months) 8.4 1.6% 8.2 74.0% 4.8 New Development Market Share 31% – 26% – 38% Brooklyn New Development Average PPSF vs. % of Brooklyn Sales Percent (%) of All Brooklyn Sales $1,800 25% 1,600 1,400 20 1,200 15 1,000 800 10 600 400 5 Average Price Per SF ($) Average 200 0 0 2016 Q2 2017 Q2 2018 Q2 2019 Q2 2020 Q2 Percent (%) of All Brooklyn Sales Average Price Per SF SERHANTTEAM.COM | 646.480.7665 Brooklyn | New Development Market Report | Q2 2020 2020 Q2 NEIGHBORHOOD BREAKDOWN New Development Active Inventory Greenpoint New development inventory made up 31% of the Brooklyn market share. This map shows the percentage of active new development 2.4% inventory by neighborhood. Downtown Brooklyn and DUMBO led the market with active new development listings for Q2 with nearly 1,000 units between 85 Jay, Brooklyn 11 Hoyt and One City Point. While there Navy Yard are more luxury high rise projects in the Williamsburg pipeline, it remains to be seen how 4.7% COVID-19 will impact construction DUMBO Vinegar Hill and launch schedules. Brooklyn 17.7% Boerum Hill and Park Slope Heights 0% saw the biggest increase in 0% active inventory from Q1 2020. 33.5% Bushwick 8.4% Cobble Hill Downtown 0.9% Brooklyn Fort Clinton Greene Hill Bed Stuy 1.4% Boerum 0.1% 0.8% 6.7% Hill Carroll 8.0% Gardens 1.5% Ocean Redhook 0.5% Hill Prospect 0% Heights Gowanus Crown Heights 1.0% Park Slope 2.0% 6.1% 3.1% Brownsville Prospect Park Greenwood Heights Windsor East Flatbush Terrace Flatbush 2.2% 0% 2020 Q2 NEIGHBORHOODSunset Park BREAKDOWN New Development Closed InventoryKensington Borough Park Canarsie Number of Sales Average SQFT Average Price Average PPSF Monthly Absorption Rate (based on contract signed units) BROOKLYN HEIGHTS 8 2,237 $6,287,913 $2,811 5.6% CARROLL GARDENS 1 1,870 $2,352,157 $1,258 8.3% COBBLE HILL 0 – – – – DOWNTOWN BROOKLYN 16 628 $774,943 $1,234 8.3% DUMBO 0 – – – – GREENPOINT 7 1,248 $1,849,714 $1,482 13.8% PROSPECT HEIGHTS 5 1,468 $1,649,724 $1,124 6.5% WILLIAMSBURG 15 949 $1,168,760 $1,232 7.0% BEDFORD-STUYVESANT 8 1,002 $818,666 $817 7.1% SERHANTTEAM.COM | 646.480.7665 Brooklyn | New Development Market Report | Q2 2020 Market Shares by Price Range in Brooklyn Neighborhoods: Q2 2020 The most in-demand price point throughout Brooklyn for Q2 was the in the $1-3M range. This quarter, Downtown Brooklyn and Bed-Stuy saw an increase in inventory for sub $1M properties. Brooklyn Heights continues to show healthy activity in the $3M+ market with a number of closings at Quay Tower. Brooklyn Heights Carroll Gardens Cobble Hill 100 100% 100% 80 80 80 60 60 60 40 40 40 20 20 20 38%75% 62%25% 0% 0% 100% 0% 0% 0% 0% 0 0 0 Over $3M $1M-$3M Under $1M Over $3M $1M-$3M Under $1M Over $3M $1M-$3M Under $1M % of Sales by Bedroom Type % of Sales by Bedroom Type % of Sales by Bedroom Type Studio 0% 1 Bedroom 13% 2 Bedroom 13% Studio 0% 1 Bedroom 0% 2 Bedroom100% Studio 0% 1 Bedroom 0% 2 Bedroom0% 3 Bedroom 25% 4+ Bedroom 50% 3 Bedroom 0% 4+ Bedroom 0% 3 Bedroom 0% 4+ Bedroom 0% Downtown Brooklyn DUMBO Greenpoint 100% 100% 100% 80 80 80 60 60 60 40 40 40 20 20 20 0% 35% 65% 0% 0% 0% 29% 29% 42% 0 0 0 Over $3M $1M-$3M Under $1M Over $3M $1M-$3M Under $1M Over $3M $1M-$3M Under $1M % of Sales by Bedroom Type % of Sales by Bedroom Type % of Sales by Bedroom Type Studio 50% 1 Bedroom 38% 2 Bedroom13% Studio 0% 1 Bedroom 0% 2 Bedroom0% Studio 0% 1 Bedroom 57% 2 Bedroom14% 3 Bedroom 0% 4+ Bedroom 0% 3 Bedroom 0% 4+ Bedroom 0% 3 Bedroom 29% 4+ Bedroom 0% Prospect Heights Williamsburg Bedford-Stuyvesant 100% 100% 100% 80 80 80 60 60 60 40 40 40 20 20 20 0% 80% 20% 5% 60% 40% 0% 25% 75% 0 0 0 Over $3M $1M-$3M Under $1M Over $3M $1M-$3M Under $1M Over $3M $1M-$3M Under $1M % of Sales by Bedroom Type % of Sales by Bedroom Type % of Sales by Bedroom Type Studio 0% 1 Bedroom 20% 2 Bedroom60% Studio 0% 1 Bedroom 53% 2 Bedroom40% Studio 0% 1 Bedroom 38% 2 Bedroom50% 3 Bedroom 20% 4+ Bedroom 0% 3 Bedroom 7% 4+ Bedroom 0% 3 Bedroom 13% 4+ Bedroom 0% SERHANTTEAM.COM | 646.480.7665 Brooklyn | New Development Market Report | Q2 2020 Serhant Spotlight Notable Listings Facts 550 Vanderbilt had over $3.8M in signed contracts and Since reaching a high of almost 5% in 2018 according to over $2.4M in new offers. Freddie Mac, mortgage rates hit an all-time low of 2.98%. During the pandemic, we launched 505 Clinton Lofts In-person showings—with safety precautions—were allowed and secured two new development projects that will be resume in NYC on June 22nd, forcing the “spring market” to launching soon. hit in the summer. A backlog of listings started appearing on the market due to increased demand. 60 Broadway, PH hit the market during Q2. With 3,800 sq. ft. of exterior space, it has been a huge Open houses can only be done by appointment with a limited attraction for buyers. number of people attending each showing. This is changing the way homes are marketed and sold and agents are finding ways to adapt. Listing inventory fell by appx. 20% in all boroughs. Coming soon! Neighborhood: Williamsburg Built: 2020 Sales Began: SOON! Williamsburg: Developer: Steve Ferguson 131 Devoe Street Monthly PSF: $1.55 # of Floors: 5 Average PPSF: $1,450 # of Units: 10 Just launched! Neighborhood: Clinton Hill Built: 2020 Clinton Hill: Developer: Dimora NYC Sales Began: June 2020 Monthly PSF: $1.05 505 Clinton Lofts # of Floors: 6 Average PPSF: $1,340 # of Units: 11 Brooklyn New Development Trends We continue to see buyers looking for Larger The luxury and townhouse market has seen an uptick homes that have outdoor space or amenities in traffic. geared towards wellness. Townhomes have Homes become more popular as the city opens back up. Most buyer activity has been for Home Buyers are taking in-home work space into heavier consideration as the return of traditional office culture properties under $1M or in the luxury Offices remains uncertain. market, where buyers are looking for larger homes with more space. Leaving With many offices not scheduled to reopen until 2021, many people have decided to leave the city. This has the City resulted in an increase in supply as more inventory becomes available on the market. Nest Seekers is a licensed real estate broker and abides by Equal Housing Opportunity laws. All material presented herein is intended for informational purposes only. Information is compiled from sources deemed reliable but is subject to errors, omissions, changes in price, condition, sale, or withdrawal without notice. No statement is made as to the accuracy of any description. All measurements and square footages are approximate. This is not intended to solicit property already listed. Nothing herein shall be construed as legal, accounting or other professional advice outside the realm of real estate brokerage. All Coming Soon listings in NYC are simultaneously syndicated to the REBNY RLS. Nest Seekers makes no representation or guarantee that Coming Soons are available in your region, or that its use will result in the benefits described herein. This Brooklyn market report is only covering New Development Condos in the neighborhoods of Brooklyn Heights, Downtown Brooklyn, Dumbo, Carroll Gardens, Cobble Hill, Prospect Heights, Greenpoint, Williamsburg and Bedford-Stuyvesant for the period of Q2 2020.