Manhattan’s new development sales have dropped 19% this year compared to last, according to a report by CityRealty, a real estate website that offers analysis and guidance on the New York real estate market, released Tuesday.
The new development sales volume fell to $8.3 billion in 2017, from $9.4 billion in 2016.
But average prices reached a new benchmark, hitting $5 million for the first time. The average price per square foot also reached a new high of $2,350, according to the report.
The report partially attributed the dip in sales to the citywide softening of the luxury market but was optimistic about the future.
If the Manhattan new developments currently under construction sell as planned over the next few years, the total number of new development sales will not only rise but reach a record high by 2020, the report said.
CityRealty forecasts that the aggregate value of new development sales will reach an estimated $9.8 billion in 2018, $11.6 billion in 2019, and $11.9 billion in 2020. These estimated values do not take into consideration projects that may be planned but have not yet been filed with the city’s attorney general or for which pricing information has not been made public, the report said.
Contributing to those totals will be the construction and completion of high-profile and high price buildings like Central Park Tower at 225 West 57th St., whose projected $4 billion sell-out would be the largest in city history; 220 Central Park South, with a price-per-square-foot asking price of $8,400; and One Manhattan Square which will be bringing 815 new units to the Lower East Side.
CityRealty projects that the average new condo price will reach $5.5 million and $2,975 per square foot by 2020.
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