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New development apartment prices rose about 5 percent in Fourth Quarter 2011

January 5, 2012

New apartment development witnessed a 9 percent decline in median price in the Fourth Quarter of 2011 to $1 million compared to a year ago while average price per square foot increased 5 percent to $1,210 according to the Corcoran Report released this week.

The decline in median price, the report continued, was due to a drop in two- and three-bedroom market share and an increase in market share for Upper Manhattan. "These trends are a result of the limited amount of new product available, particularly in prime locations. Compared to a year ago, average price per square foot increased in every submarket except for the East Side," the report maintained.

"Three-plus bedroom median price was much lower this quarter, down 26 percent from last quarter and 37 percent from a year ago due to a number of $6-plus million deals at The Lucida, The Laurel, Georgica and Manhattan House in Fourth Quarter 2011 and Third Quarter 2011," the report said.

On the West Side, the Corcoran Report found that new development "pricing exhibited stellar growth due to the extremely limited product available," noting that "compared to a year ago, median price doubled to $2.9 million while average price per square foot increased 33 percent to $1,624" and the report attributed the boom "primarily due to high-priced closings at The Aldyn and The Laureate."

Median price for new development in Midtown West rose 34 percent to $1.25 million while average price per square foot increased 19 percent to $1,403, compared to last quarter, according to the Corcoran Report, which noted that "one bedroom median price surged due to a concentration of sales at The Setai Fifth Avenue."

On the East Side, the average price for three-bedroom and larger apartments rose 42 percent in the Fourth Quarter 2011, compared to the previous year's quarter, according to the reports issued this week by Brown Harris Stevens and Halstead Properties. "The average price declined for smaller units, with studio prices 12 percent lower than a year ago" while condo prices on the East Side "average $1,210 per square foot, an 8 percent improvement from the fourth quarter of 2010," the reports said.

These reports found that "the average price per square foot for West Side condos jumped 20 percent over the past year to $1,571," due in part to a large number of closings at The Laureate, a new development whose sales averaged over $2,200 a foot. West Side co-op prices rose 9 percent for pre-war buildings, the reports continued, but fell 6 percent for post-war units.

"Sales at 1485 Fifth Avenue, a new development, helped push the average price 10 percent higher over the past year for three-bedroom and large apartments in Northern Manhattan, to $784,280. The average price per room rose 5 percent for pre-war and 2 percent for post-war co-ops compared to 2010's fourth quarter. Condo prices were also higher, as the average price per square foot increased 3 percent over the past year to $581."

The Elliman Report said that in the Fourth Quarter 2011 studios accounted for 19.7 percent of the co-op market share of sales with a median sales price of $345,000, one-bedrooms accounted for 37.6 percent with a median sales price of $555,000, two-bedrooms accounted for 28.4 percent with a median sales price of $1,050,000, three-bedrooms accounted for 11.8 percent with a median sales price of $2,135,000 and four-plus bedrooms accounted for 2.5 percent with a median sales price of $4,660,000.

For condos in the Fourth Quarter, the Elliman Report found that studios accounted for 8.5 percent of sales with a median sales price of $484,000, one-bedrooms for 37 percent with a median sales price of $765,000, two-bedrooms for 26.2 percent with a median sales price of $1,364,455, three-bedrooms for 24.4 percent with a median sales price of $2,500,000 and four-plus bedrooms for 3.8 percent with a median sales price of $6,160,412.


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