According to analysis by Brown Harris Stevens Development Marketing (BHSDM), 102 new Brooklyn development contracts were signed between May 1 and May 31, 2022 based on Resource/RealPlus data as of 6 a.m. June 1. The highest sponsor deal was at 30 Front Street (Olympia Dumbo), asking for $5,500,000. This contract also represents the highest price per square foot, at $2,358.
The May 2022 average contract price was reported at $1,500,316 based on the last asking price, down 12% from the April average asking price of $1,698,021. This is also a slight decrease of 3% from the May 2021 average asking price of $1,551,489.
“The month-over-month decline in contract activity was primarily the result of lower inventory of new developments in the market,” said Robin Schneiderman, managing director of Brown Harris Stevens Development Marketing. “Rising interest rates are a contributing factor, but not the main event. The slight drop in the latest average asking price is a reflection of the current inventory, which is also reflected in the drop in properties over $3 million entering contract.
A total of 77 contracts (75%) were for one and two bedrooms, a 6% increase in contract distribution compared to April 2022. There were 16 three-bedroom contracts (16%), a decrease of 3 % of contract distribution in April 2022.
There were 42 units (41%) that have been under contract with asking prices up to $1 million, remaining flat against 40% of the distribution of contracts in this price range in April 2022. There are had 34 contracts signed (33%) between $1 million and $2. million, a slight increase from 30% distribution in April 2022. Only 6% of all contracts had last-used asking prices of $3 million or more, down from 13% in the same range prices in April 2022.
Boerum Hill had the most contract activity with 15 units signed, followed by Downtown Brooklyn with 14 units signed and Park Slope with 11 units signed.
Outdoor space remains a priority, with 68% (69 units) offering shared or private outdoor space. This is an increase from 60% units with outdoor space in April 2022.
In addition, 57% (58 units) of all contracts signed also offered parking, either rented or owned. This is an increase from the 45% of contracts in April offering parking. Of the eight main buildings with contracts signed in May 2022, all but one offered some form of parking.
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