Prices Rise for Newly Built Apartments, But Volume of Sales Drop in April: Report

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New Yorkers buying apartments in new developments in Brooklyn are paying more than those who purchased in previous months, and deal-making seems to be on the decline.

Average asking prices of newly built apartments in Brooklyn was $1.7 million in April, a 9 percent increase from March, but there were 24 percent fewer contracts signed than the month prior, according to monthly contract analysis by Brown Harris Stevens Development Marketing (BHSDM).

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Contract activity on a year-over-year basis for April dropped even further, by 45 percent compared to April 2021, with 115 contracts this year compared 210 in the previous cycle, the data from Resource/RealPlus and analyzed by BHSDM indicates. This isn’t necessarily a bad thing since there’s not a lot of units on the market in Brooklyn.

“Very little active inventory in the Brooklyn new development market has resulted in a decline in absorption in the short term,” Laura Tomana, vice president of research and market analytics for BHSDM, said in a statement. “At the current pace, with 368 actively marketed units, excluding shadow inventory, all would be absorbed in a little more than three months.”

With outdoor space and parking major selling points for buyers, the 81 units priced under $2 million made up about 70 percent of the contracts signed in April, while 96 percent were $4 million or under.

The sale of 1 Prospect Park West’s Penthouse A was the biggest of the month in Brooklyn with an asking price $7.75 million.

Sales for April in Manhattan showed a downward curve as well with the number of contracts signed down by only 12 percent since March and asking prices going up 2 percent. Figures for March showed a 10 percent increase in contract activity in February and a 29 percent uptick in sales volume from January. 

“Reduced inventory and the initial impact of rising interest rates contributed to April’s reduction in absorption,” Stephen Kliegerman, president of BHSDM, said in a statement. “When compared to April 2021, it should be noted that was reflective of a moment in time when buyers are returning to the market, flush with pent-up demand.”

The biggest sale altogether in Manhattan was for a home in the Woolworth Building with an asking price of $23.5 million. The highest price per square foot in April was in the purchase of Unit 29A at 200 Amsterdam Avenue, which came out to $4,518 per square foot, according to BHSDM.

Mark Hallum can be reached at mhallum@commercialobserver.com.