New York City’s new development contracts dried up as the winter thawed to spring.
The city notched 648 contracts in the second quarter, down 9 percent from the same period in the previous year, according to a Marketproof report.
The luxury market, which has performed well across the city as a whole, didn’t fare much better. There were 105 sponsor contracts for units asking at least $4 million signed in the second quarter, down from 136 the previous year, according to Marketproof.
The national market spent the spring season beset by concerns over President Donald Trump’s tariffs and a sluggish economy. But in New York City, the lack of new development inventory to bolster sales appears to be the main culprit behind the weak performance from the new development sector, according to Brown Harris Stevens Development Marketing managing director Robin Schneiderman.
“It’s become an inventory story,” he said. “New quality inventory in prime Manhattan residential locations continues to sell well, especially as supply continues to wane.”
Supply levels in Manhattan are 18 percent below the 10-year average, according to data from BHSDM. Many of the units on the market have also been on the market for a while; one-third have been on for more than four years, according to Schneiderman.
The numbers have also been deprived of the city’s buzziest new development arrival, 80 Clarkson, which features 112 residential units selling for over $6,000 per square foot, on average. A source previously told TRD that the building’s South Tower, which has 31 units for sale, is nearly sold out. Others have suggested the building is already halfway sold, as luxury buyers have gravitated towards the downtown offering from Atlas Capital and Zeckendorf Development.
The project’s cheapest listed unit is over $4 million, which means sales at the building could make up the entire gap in the luxury sector.
That absence also likely partially explains why Manhattan fared the worst of the three boroughs in terms of contracts with 331 signed in the last three months, a more than 20 percent drop from the prior year.
Recently launched developments in the borough have still performed well. Naftali Group’s The Willow, a 69-unit building in Gramercy, has already reported 17 contracts since launching sales at the end of March.
Compass Development Marketing Group is leading sales.
Brooklyn recorded 224 contracts in the second quarter, a 2 percent increase over last year.
Williamsburg and Greenpoint made up nearly one-third of contract signed dollar volume in the borough, according to data from BHSDM, largely driven by deals at Two Trees’ One Domino Square and Naftali Group’s Williamsburg Wharf.
The two developments, separated by just a handful of blocks, have traded claims for record sponsor sales in North Williamsburg. One Domino Square holds the current title after the sale of a $7.45 million duplex penthouse, which also set a neighborhood record of $3,046 per square foot.
Sales at One Domino Square are being led by an in-house marketing team run by Aaron Goed. A Serhant team helmed by Ryan Serhant, Peter Zaitzeff, Alexandra Newman and Jennifer Lee is leading sales at One Williamsburg Wharf.
Closings at One Domino Square also helped drive the price per square foot in the borough up to $1,360, which is 13 percent above the 10-year average, according to data from BHSDM.
Queens saw contracts shoot up by more than 35 percent to 93 in the quarter. Century Development Group’s The Vesta has led the borough in signed contracts each of the last three months.
Since launching sales in April, the 115-unit Long Island City development has reported 22 contracts. Serhant’s Kayla Lee and Serhant New Development Marketing are leading sales
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