2016 Manhattan New Development Report Title Card
Condominium development is a multi-billion dollar business in Manhattan, and new apartment sales are poised to reach a level not seen since last decade’s boom cycle by 2018. While fewer developers in 2016 are signing on to build sky-grazing towers with penthouses that cost $100 million or more, condominium prices are still on an upward trajectory, with anticipated sales totaling roughly $30 billion through 2019. In total, 92 condominium projects with roughly 8,000 new apartments are under construction or proposed.
New development sales totaled $5.4 billion last year,
up significantly from the $4.1 billion in sales recorded in 2014. Aggregate sales totals are expected to continue to increase over the next few years, reaching $8.4 billion this year and more than $10 billion by 2018.
While prices have shot up in recent years, the number of new development units sold in each year has remained relatively flat. This reflects a change in development style over the past 8 years. Instead of focusing on quantity of apartments, developers are creating buildings with fewer apartments, but at higher price-points.
The average sales price of new developments has been markedly above the average price of all other Manhattan condos since 2013. In 2014, the average price of new units was at an all-time high of $4.8 million before dipping to $3.7 million in 2015. The average price is expected to reach $4.4 million this year and continue to increase in subsequent years.
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