second quarter 2021 residential market report manhattan

BHSID 20361085 Man

hatt

an

Second Quarter 2021Residential Market Report

BHS 2

BHSID 21066483

Message from Bess Freedman CEO of

Manhattan apartment closings surged in the second quarter, with activity returning to—and in some cases surpassing—pre-COVID-19 levels. The 3,944 sales reported last quarter were more than double that of a year ago, and 38% higher than 2021’s first quarter. A record was set for the number of signed contracts in the second quarter of 2021, so expect closings to remain very strong in our 3Q21 report.

The jump in closings included all price categories, especially resale apartments priced over $5 million. Increasing discounts brought buyers back into this market, with closings more than doubling compared to a year ago—and up 85% from 2021’s first quarter. At 220 Central Park South alone, there were four resale closings, with an average price of $53.4 million.

The explosion of luxury closings brought the average resale price up 21% from just the prior quarter, to its second-highest level ever. Only the second quarter of 2019 posted a higher average resale price, which was driven by pending mansion and transfer tax increases.

It’s important to view this report with two things in mind:

• Both the average and median prices in 2Q21 were dramatically inflated by the rush of luxury closings, so you can’t assume prices are rising for all apartments just because those two figures climbed sharply.

• Year-over-year comparisons should be viewed carefully, since COVID-19 began to impact closing data starting in 2020’s second quarter.

The most important message I can share with you is that Manhattan and New York City are back big time. We’ve never been as busy as during the past few months, and that momentum is getting a boost at just the right time. Governor Cuomo’s removal of most COVID-19 restrictions is the best news not just for our market, but for the city’s economy.

A recent survey from the Partnership for New York City found that 62% of Manhattan’s one million office workers will be returning by September, compared to just 12% at the time of the survey in May. These returning workers will help support the restaurants and retail shops that make Manhattan such a great place to live.

BHS 3

Manhattan All Cooperatives and Condominiums*

Q2 2021

A sharp increase in luxury closings, particularly condos, helped bring the average apartment price 8% higher than a year ago, to $1,918,761. The number of closings more than doubled from 2020’s second quarter, and was 38% higher than the previous quarter. Condos posted a much higher increase in their average price from 1Q21 (19%) than co-ops did (7%).

Average and Median Sales Price

$1,7

69,12

0

$2,14

3,28

3

$1,8

61,15

0

$1,6

36,8

39

$1,9

18,7

61

$995

,000

$1,0

80,0

00

$1,0

70,0

00

$1,0

50,0

00

$1,12

5,00

0

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

2nd Q 20 3rd Q 20 4th Q 20 1st Q 21 2nd Q 21

Average Sales Price Median Sales Price

1,722

1,584

2,20

0

2,85

1

3,94

4

500

1,500

2,500

3,500

4,500


Average and Median Sales Price Number of Closings

Cooperative Average and Median Sales Price Condominium Average and Median Sales Price

$1,19

4,25

0

$1,16

0,28

8

$1,19

2,97

7

$1,15

2,61

5

$1,2

36,4

42

$770

,000

$778

,000

$775

,000

$780

,000

$800

,000

$500,000

$750,000

$1,000,000

$1,250,000

$1,500,000



$2,5

55,9

09

$3,3

44,10

9

$2,6

18,7

58

$2,2

51,7

58

$2,6

78,12

3

$1,6

50,0

00

$1,7

50,0

00

$1,6

50,0

00

$1,5

23,8

13

$1,6

10,0

00

$1,000,000

$1,750,000

$2,500,000

$3,250,000

$4,000,000



* Includes new development and resale apartments. 2Q21 data is preliminary and subject to revision in future reports. Data from the prior four quarters has been revised to include sales recorded after our initial reports were released.

BHS 4

The average new development price of $3,055,471 was 4% higher than 1Q21, and down slightly from a year ago. Remember that this figure is based on the closing date, so this data can be volatile and not reflective of current market conditions. Just over 40% of 2Q21 new development closings occurred south of 14th Street, the most of any market area.


Manhattan New Developments

Q2 2021

Sales by Area

6.9%

28.3%

8.6%12.5%

13.8%

29.9%

2Q20 2Q21

East Side

West Side

Midtown

Downtown (34th -14th St)

Downtown (South of 14th St)

Upper Manhattan

19.5%

40.2%9.2%

8.7%

10.6%

11.8%

$1,9

95

$2,3

26

$2,0

91

$1,8

55

$1,9

37

$1,800

$2,000

$2,200

$2,400

$2,600


Average Price Per Square Foot

$3,0

81,2

76 $5

,154,

912

$3,4

72,4

15

$2,9

25,3

10

$3,0

55,4

71

$1,8

24,3

59

$2,4

25,0

00

$2,2

19,5

75

$1,9

46,3

63

$2,0

89,0

80

$0

$2,000,000

$4,000,000

$6,000,000

$8,000,000



BHS 5

Manhattan Resale Cooperatives and Condominiums

Q2 2021

Luxury resale closings took off in the second quarter, leading to a 21% increase in the average resale price from the first quarter of 2021. The median price, which measures the middle of the market, posted a 4% gain over the past three months to $998,250.


The average co-op resale price of $1,228,728 was 6% higher than 1Q21, with only studios posting a decline during that time. Three-bedroom and larger co-ops led pricing gains, with their average price 5% higher than the prior quarter.

Cooperative Average Sales Price

Studio 1-Bedroom 2-Bedroom 3+Bedroom All

2nd Q 20 $456,998 $706,250 $1,358,587 $3,132,120 $1,209,095

3rd Q 20 $472,764 $718,076 $1,344,398 $2,768,385 $1,155,391

4th Q 20 $432,548 $711,306 $1,339,736 $2,895,954 $1,206,051

1st Q 21 $439,114 $704,801 $1,316,666 $2,658,010 $1,160,227

2nd Q 21 $433,104 $718,057 $1,327,420 $2,780,157 $1,228,728

Condo resale prices averaged $2,435,164 in the second quarter, 19% higher than a year ago, and 30% higher than the first quarter of 2021. The number of resale condo closings over $10 million tripled from 1Q21, which also explains the steep rise in the average price for three-bedroom and larger condos.

Condominium Average Sales Price

Studio 1-Bedroom 2-Bedroom 3+Bedroom All

2nd Q 20 $614,429 $1,065,015 $1,777,982 $4,993,293 $2,041,136

3rd Q 20 $676,182 $986,323 $1,935,305 $4,800,766 $2,065,781

4th Q 20 $649,617 $959,474 $1,758,698 $4,581,805 $2,065,550

1st Q 21 $601,303 $950,348 $1,867,559 $3,922,836 $1,867,499

2nd Q 21 $608,723 $1,052,824 $1,901,845 $6,136,714 $2,435,164

$1,4

87,8

11

$1,4

76,8

70

$1,5

41,7

05

$1,4

21,6

54

$1,7

20,6

06

$915

,000

$925

,000

$940

,000

$960

,000

$998

,250

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000



BHS 6

145

157

135140 144

75

100

125

150

175


Average and Median Sales Price Per Square Foot

Resale apartments sold in the second quarter spent an average of 144 days on the market, a minimal change from a year ago, and up 3% from the previous quarter. Sellers received 96.1% of their last asking price, up from 95.5% in 1Q21.

Both the average and median loft prices per square foot rose, compared to the prior year and the prior quarter.

$1,3

54

$1,4

16

$1,5

37

$1,4

13

$1,4

48

$1,3

00

$1,3

86

$1,3

83

$1,3

04

$1,4

13

$500

$1,000

$1,500

$2,000


Average PPSF Median PPSF

Manhattan Resale Cooperatives and Condominiums

Q2 2021

96.3%

94.8% 94.9%

95.5%

96.1%

94.0%

95.0%

96.0%

97.0%

98.0%


Average Days on the Market Selling vs. Last Asking Price

Lofts

BHS 7

19.1%

23.1%

6.4%

17.2%

12.9%

21.3%

Upper ManhattanGenerally north of 96th Street on the East Side, 110th Street on the West Side pages 18-19

West SideGenerally 59th Street to 110th Street, Hudson River to west of Fifth Ave. pages 10-11

East SideGenerally 59th Street to 96th Street, Fifth Ave. to the East River pages 8-9

Midtown34th Street to 59th Street, East River to the Hudson River pages 12-13

Downtown34th Street to 14th Street pages 14-15

DowntownSouth of 14th Street pages 16-17

Percentage of Resales in Manhattan

Q2 2021

BHS7

BHS 8

The median resale price rose 3% over the past year for

one-bedroom apartments as

well as three-bedroom and

larger apartments.

Co-op prices rose for both

prewar and postwar units

compared to 2Q20.

Resale Apartments

Q2 2021

Generally 59th St. to 96th St., Fifth Ave. to the East River

East

Sid

eBHSID 20393179

BHS 9

BHSID 20800278

$305

,195

$259

,453

$310

,969

$267

,879

$150,000

$200,000

$250,000

$300,000

$350,000

Prewar Postwar

2nd Q 20 2nd Q 21

Studio 1-Bedroom 2-Bedroom 3+Bedroom

Percent of Sales

2nd Q 20 12% 39% 29% 20%

2nd Q 21 11% 33% 31% 26%

Median Price

2nd Q 20 $427,500 $675,000 $1,450,000 $2,512,515

2nd Q 21 $410,000 $697,600 $1,450,000 $2,593,549

% Change -4% 3% 0% 3%

CooperativeAverage price per room

Condominium Average price per square foot

BHSWEB#20178493

Q2 2021

East Side Resale Apartments

$1,3

79

$1,4

23

$300

$600

$900

$1,200

$1,500

2nd Q 20 2nd Q 21

BHS 10

Wes

t Sid

eStudios and two-bedroom

apartments each posted a

sharp decline in their median

price compared to a year ago.

The average condo price rose

4% from 2Q20 to an average

of $1,544 per square foot. BHSID 19483438

Resale Apartments

Q2 2021

Generally 59th St. to 110th St., Hudson River to West of Fifth Ave.

BHS 11

BHSID 21073214


Percent of Sales

2nd Q 20 11% 35% 31% 23%

2nd Q 21 12% 37% 33% 19%

Median Price

2nd Q 20 $475,000 $757,500 $1,505,000 $2,755,514

2nd Q 21 $398,500 $745,000 $1,312,500 $2,925,000

% Change -16% -2% -13% 6%



Q2 2021

West Side Resale Apartments

$317

,228

$272

,027

$285

,031

$258

,179

$150,000

$200,000

$250,000

$300,000

$350,000

Prewar Postwar

2nd Q 20 2nd Q 21

$1,4

79 $1,5

44

$800

$1,000

$1,200

$1,400

$1,600

2nd Q 20 2nd Q 21

BHS 12

Mid

tow

nStudios were the only size

category with a lower median

price than 2020’s second

quarter.

A sharp increase

in luxury sales pushed the

average condo price per square

foot to $1,539. BHSID 20791673

Resale Apartments

Q2 2021

34th St to 59th St, East River to the Hudson River

BHS 13

BHSID 21088744


Percent of Sales

2nd Q 20 20% 43% 33% 5%

2nd Q 21 18% 42% 28% 11%

Median Price

2nd Q 20 $475,000 $680,000 $1,325,000 $1,988,000

2nd Q 21 $419,250 $722,500 $1,342,500 $2,281,250

% Change -12% 6% 1% 15%



Q2 2021

Midtown Resale Apartments

$209

,644

$219

,491

$230

,001

$222

,719

$50,000

$100,000

$150,000

$200,000

$250,000

Prewar Postwar

2nd Q 20 2nd Q 21

$1,3

26

$1,5

39

$0

$500

$1,000

$1,500

$2,000

2nd Q 20 2nd Q 21

BHS 14

The median price was 4% higher than a year ago for

both one-bedroom and two-

bedroom apartments.

Condo prices averaged $1,547

per square foot, 5% less than

in 2Q20.

Resale Apartments

Q2 2021

34th St. to 14th St.

Dow

ntow

nBHSID 21067051

BHS 15

BHSID 21035471

$259

,873

$244

,310$2

70,2

05

$242

,838

$100,000

$150,000

$200,000

$250,000

$300,000

Prewar Postwar

2nd Q 20 2nd Q 21


Percent of Sales

2nd Q 20 17% 55% 20% 7%

2nd Q 21 17% 47% 28% 8%

Median Price

2nd Q 20 $523,000 $795,000 $1,705,000 $4,950,000

2nd Q 21 $522,500 $825,000 $1,765,000 $4,375,000

% Change 0% 4% 4% -12%



$1,6

29

$1,5

47

$600

$900

$1,200

$1,500

$1,800

2nd Q 20 2nd Q 21

34th St. to 14th St.

Q2 2021

Downtown Resale Apartments

BHS 16

The median price of two-

bedroom units fell 10% to $1,750,000 over the past year.

Condo prices dipped from

2Q20 to an average of

$1,619 per square foot.

Resale Apartments

Q2 2021

South of 14th St.

Dow

ntow

nBHSID 20720464

BHS 17

BHSID 20867828


Percent of Sales

2nd Q 20 20% 40% 23% 16%

2nd Q 21 11% 37% 33% 18%

Median Price

2nd Q 20 $540,000 $925,000 $1,950,000 $4,000,000

2nd Q 21 $526,250 $975,000 $1,750,000 $4,139,444

% Change -3% 5% -10% 3%



South of 14th St.

Q2 2021

Downtown Resale Apartments

$339

,621

$307

,753

$380

,246

$301

,882

$200,000

$250,000

$300,000

$350,000

$400,000

Prewar Postwar

2nd Q 20 2nd Q 21

$1,6

29

$1,6

19

$0

$500

$1,000

$1,500

$2,000

2nd Q 20 2nd Q 21

BHS 18

While the median price for

studios rose 20% from

2Q20, this is a relatively small

segment of the market that

can have large fluctuations in

data from quarter to quarter.

The average condo price per

square foot fell 3% over the

past year.

Resale Apartments

Q2 2021

Generally North of 96th Street on the East Side, and 110th St. on the West Side

Upp

er M

anha

ttan

BHSID 20042460

BHS 19

BHSID 21082883


Percent of Sales

2nd Q 20 7% 33% 38% 21%

2nd Q 21 3% 25% 49% 23%

Median Price

2nd Q 20 $300,000 $412,000 $710,000 $920,000

2nd Q 21 $360,000 $430,000 $680,000 $725,000

% Change 20% 4% -4% -21%



Q2 2021

Upper Manhattan Resale Apartments

$130

,505

$139

,981

$126

,068 $1

47,3

37

$0

$50,000

$100,000

$150,000

$200,000

Prewar Postwar

2nd Q 20 2nd Q 21

$886

$858

$200

$400

$600

$800

$1,000

2nd Q 20 2nd Q 21

©2021 by Brown Harris Stevens. All Rights Reserved. This information may not be copied, used or distributed without Brown Harris Stevens’ consent. While information is believed true, no guaranty is made of accuracy.

Prepared by Gregory Heym, Chief Economist, Brown Harris Stevens.

East Side445 Park AvenueNew York, NY 10022 212.906.9200

West Side1926 BroadwayNew York, NY 10023212.588.5600

West Side/Columbus408 Columbus AvenueNew York, NY 10024212.769.3000

Downtown130 Fifth AvenueNew York, NY 10011212.906.0500

Village831 BroadwayNew York, NY 10003212.381.6500

Midtown770 Lexington Avenue, 10th FloorNew York, NY 10065212.508.7200

SoHo451 West BroadwayNew York, NY 10012212.381.4200

Tribeca43 North Moore StreetNew York, NY 10013212.452.4500

Harlem2169 Frederick Douglass BoulevardNew York, NY 10026212.381.2570

Development Marketing451 West BroadwayNew York, NY 10012212.521.5757

Con

tact

UsSecond Quarter 2021

Residential Market Report

second quarter 2021 residential market report manhattan

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