New Development Year-End Report

2016*Available inventory includes all units currently on the market as well as those not yet released.

BROOKLYNMANHATTAN

AVERAGE PRICE PER SQ. FT. CLOSED

$1,338AVERAGE PRICE PER SQ. FT. CLOSED

$2,185

AVAILABLE INVENTORY (UNITS)*

855AVAILABLE INVENTORY (UNITS)*

5,440

AVERAGE PRICE PER SQ. FT. CONTRACT SIGNED

AVERAGE PRICE PER SQ. FT. ACTIVE

$1,362

$1,422

$2,233

$2,586

AVERAGE PRICE PER SQ. FT. CONTRACT SIGNED

AVERAGE PRICE PER SQ. FT. ACTIVE

28% YoY 23% YoY

MANHATTAN BROOKLYN

Summary Points

2016 saw increased strength

in mid-market price points. In

Manhattan the total percentage of

new development deals entering

contract from $1M to $3M rose to

45.4% in 2016, up from 37.4% at

year-end 2015. In Brooklyn the total

percentage of new development

deals entering contract priced at or

below $3M rose to 93% in 2016, up

from 84.6% at year-end 2015.

The total number of available new development units rose 28% year-over-year

in Manhattan to approximately 5,440, up from 4,250 at year-end 2015, still well

below a high of nearly 9,200 units in 2006. This increase includes the recent

launch of One Manhattan Square in the Lower East Side with over 800 units. In

Brooklyn, available units increased 23% year-over-year to approximately 850, up

from nearly 700 at year-end 2015. Manhattan inventory represents approximately

2.5 years of supply at current absorption rates, while Brooklyn inventory

represents approximately 1.5 years of supply.

HPDM | HPDMNY.COM | 2016 Year-End Report | 2

MEDIAN PRICE PER SQ. FT.

Active $2,303 $1,406

Contract Signed $2,066 $1,337

Closed $2,021 $1,329

AVERAGE PRICE PER SQ. FT.

Active $2,586 $1,422

Contract Signed $2,233 $1,362

Closed $2,185 $1,338

MEDIAN PRICE

Active $4,287,500 $1,754,250

Contract Signed $2,692,495 $1,322,500

Closed $2,997,000 $1,404,000

AVERAGE PRICE

Active $6,875,680 $2,228,712

Contract Signed $4,218,188 $1,551,287

Closed $4,436,547 $2,035,264

TOTAL INVENTORY (UNITS)

Total 10,287 2,187

Units Available 5,440 855

% Closed or Contract Signed

47.1% 60.9%

Median Price for Closed new

development units in Manhattan

rose 50% year-over-year while

Brooklyn rose 49%. In Manhattan,

Median price rose to $2.9M from

$1.9M in 2015. In Brooklyn, Median

price rose to $1.4M from $941K in

2015. This dramatic year-over-year

increase reflects delivery of higher

price-point units that went into

contract 12 – 18 months ago.

Pricing for Manhattan new development

units entering into contract in 2016 fell

1.9% year-over-year to $2,223 PSF from

$2,268 in 2015. This continues to reflect

strength in the mid-market price points

of $1M - $4M and reduced absorption

in the super-luxury market above $10M.

Avg. PPSF for closed new development

units rose 14.5% year-over-year to

$2,185, due primarily to delivery of units

at 432 Park Avenue, The Greenwich

Lane, and 150 Charles Street.

In Brooklyn, new development

entering into contract averaged

$1,362 PSF, up 2.0% year-over-

year from 2015, boosted by signed

contracts at Pierhouse, The Hendrik,

and 190 South 1st Street. Closed

new development deals in Brooklyn

increased to an average of $1,338

PSF, up 14.7% from 2015 due largely

to closings at 1 John Street, 210

Pacific Street, 280 Metropolitan

Avenue, and Pierhouse.

50%

2.5 YEARS OF SUPPLY

1.9% $1,362 PSF

$1M-$3M

HPDM | HPDMNY.COM | 2016 Year-End Report | 3

Introduction HPDM is pleased to present our Year-

End New Development Report for

2016. This report focuses exclusively

on the NYC new development

condominium market, and aims

to be the only report of its kind

presenting a comprehensive picture

of new development activity. New

development is unique from the overall

real estate market in that closings

often do not occur for 12 to 18 months

after a buyer enters into contract.

Therefore, to fully understand this

market it is critical to track active

listings, listings in contract, closed

listings, as well as total inventory.

This report analyzes 2016 as a whole

and is also a snapshot of current new

development market conditions.

In Manhattan, pricing for new

development units entering into

contract in 2016 fell 1.9% year-over-

year to $2,223 PSF from $2,268 in

2015. This reflects continued strength

in the mid-market price points of $1M

- $4M and reduced absorption in the

super-luxury market above $10M. Avg.

PPSF for closed new development

units rose 14.5% year-over-year to

$2,185, due primarily to continued

delivery of units at 432 Park Avenue,

The Greenwich Lane, and 150 Charles

Street. In Brooklyn, new development

entering into contract averaged $1,362

PSF, up 2.0% year-over-year from

2015, boosted by signed contracts at

Pierhouse, The Hendrik, and 190 South

1st Street. Closed new development

deals in Brooklyn increased to an

average of $1,338 PSF, up 14.7%

from 2015 due largely to closings at

1 John Street, 210 Pacific Street, 280

Metropolitan Avenue, and Pierhouse.

METHODOLOGY:

§ All data is provided by proprietary

Halstead Property Development

Marketing research.

§ This report tracks new development

projects only, defined as those new

to the market and currently selling

sponsor units. Buildings that have

fully sold out of sponsor units are

not included, even though they may

have recently been built. Resale data

is not included in this report.

§ All listings were compiled as of

12/12/16.

§§ Total§Inventory is defined as all units

within new development projects

that are currently listed as Active,

Contract Signed, or Closed, as well

as those units not yet released

to the market. Available§Units is

defined as new development units

that are currently listed as Active

as well as those not yet released

to the market. These numbers

include units released prior to 2016,

provided they are in a project that

has not sold out all sponsor units.

By including currently unreleased

units that are not yet listed as

Active, this report provides a unique

and comprehensive analysis of the

current new development market.

TABLE OF CONTENTS

MARKET OVERVIEW ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5

MANHATTAN NEIGHBORHOOD INSIGHT ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7

ANALYSIS BY UNIT TYPE ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .8

PRICE POINT ANALYSIS ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

TOTAL INVENTORY ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11

FURTHER INSIGHT ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

CONTACT ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

OOSTENtheoosten.com

HPDM 2016 Sales• OVER 260 UNITS SOLD IN 23

PROJECTS TOTALING NEARLY $500M

• HPDM EXCLUSIVE PROJECTS ACCOUNTED FOR

38% OF ALL NEW DEVELOPMENT CONTRACTS

SIGNED IN BROOKLYN DURING 2016

HPDM | HPDMNY.COM | 2016 Year-End Report | 5

Market OverviewDowntown saw the most development activity in Manhattan in 2016 with 1,166 units either entering into contract or closing.

Next to Billionaire’s Row, Midtown East shows the highest Avg. Active Price per Sq. Ft. at $2,819, with Downtown only slightly

lower at $2,715 per Sq. Ft. The highest Avg. Price per Sq. Ft. for Contract Signed deals in 2016 occurred Downtown, with an

average of $2,539 PSF, essentially flat year-over-year after averaging $2,545 PSF in 2015.

CONTRACT SIGNED AND CLOSED

GROUND-UP VS. CONVERSIONS — AVG. PRICE PER SQ. FT.

ACTIVE, CONTRACT SIGNED, CLOSED — AVG. PRICE PER SQ. FT.

* Billionaire’s Row comprised of: 157 W 57th, 20 W 53rd, 432 Park Ave, 21 E 61st, 22 CPS, 53 W 53rd** Brooklyn neighborhoods tracked: Bedford Stuyvesant, Boerum Hill, Brooklyn Heights, Bushwick, Carroll Gardens, Clinton Hill, Crown Heights, Downtown Brooklyn, DUMBO, Greenpoint, Park Slope, Prospect Heights, Red Hook, Williamsburg

NUMBER OF UNITS

GROUND UP CONVERSIONS NUMBER OF UNITS

$1,2

40

$2,

232

$2,

158

$6

,08

5

$2,

08

3

$2,

523

$1,3

45$

96

5

93 185

278

189

16

258

1,166

503

1,200

1,000

800

600

400

200$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

HARLEM UWS UES MIDTOWN WEST BILLIONAIRE'S ROW* MIDTOWN EAST DOWNTOWN BROOKLYN**

Ground-Up vs. Conversions - Avg. Price per Sq. Ft.

$1,9

86

$2,

414

$1,7

26

$1,7

31

$2,

378

$1,4

25

ACTIVE CONTRACT SIGNED CLOSED

$1,7

89

$2,

019

$2,

09

1

$5,

386

$2,

819

$2,

715

$1,4

22

$1,2

63

$2,

160

$1,7

92

$2,

073

$6

,79

1

$2,

241

$2,

539

$1,3

62

$1,0

89

$2,

08

9

$1,9

52

$1,6

59

$5,

763

$2,

030

$2,

44

1

$1,3

38

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

$7,000

HARLEM UWS UES MIDTOWN WEST BILLIONAIRE'S ROW*

MIDTOWN EAST DOWNTOWN BROOKLYN**

$2,

301

HPDM | HPDMNY.COM | 2016 Year-End Report | 6

Market Overview by Quarter

CONTRACT SIGNED, CLOSED — AVG. PRICE PER SQ. FT.

Q1 2016 Q2 2016 Q3 2016 Q4 2016

$2,

548

$2,

325

$1,2

45$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

HARLEM UWS UES MIDTOWN WEST BILLIONAIRE'S ROW*

MIDTOWN EAST DOWNTOWN BROOKLYN**

$9

86

$1,7

78

$1,9

64

$4

,354

$2,

018

$2,

313

$1,3

08

$1,3

73

$1,9

22

$1,9

10

$5,

109

$2,

140

$2,

281

$1,3

22

$1,1

17

$1,8

75

$1,9

87

$5,

48

6

$1,9

58 $2,

341

$1,3

78

$1,1

18

$2,

09

0

$1,7

29

$6

,188

$2,

197

$2,

589

$1,3

22

$2,

022

$2,

140

$2,

032

$2,

251

The graph below depicts pricing for Contract Signed and Closed units by quarter. Outside of Billionaire’s Row, Midtown East

experienced the largest quarter-over-quarter increase in Average PPSF at 12.2%, rising to $2,197 PSF, due largely to delivery

of units at 400 Park Avenue South. The Upper East Side experienced the second largest quarter-over-quarter increase, rising

11.5% to $2,090 PSF in Q4 2016, due predominately to contracts signed at 12 East 88th and 20 East End Avenue. Meanwhile,

Avg. PPSF in Brooklyn declined 4.1% quarter-over-quarter to $1,322, following four consecutive quarterly increases.

* Billionaire’s Row comprised of: 157 W 57th, 20 W 53rd, 432 Park Ave, 21 E 61st, 22 CPS, 53 W 53rd** Brooklyn neighborhoods tracked: Bedford Stuyvesant, Boerum Hill, Brooklyn Heights, Bushwick, Carroll Gardens, Clinton Hill, Crown Heights, Downtown Brooklyn, DUMBO, Greenpoint, Park Slope, Prospect Heights, Red Hook, Williamsburg

HPDM | HPDMNY.COM | 2016 Year-End Report | 7

UPTOWN, MIDTOWN. AND DOWNTOWN

Outside of Billionaire’s Row, the highest average Contract Signed pricing in

Manhattan for 2016 was achieved in West Chelsea at $3,373 PSF followed by

Greenwich Village at $3,165. The highest average Closed pricing outside of

Billionaire’s Row occurred in the West Village at $3,159 PSF followed by West

Chelsea at $2,881 PSF.

Manhattan Neighborhood Insight

UPTOWN AND MIDTOWN

MANHATTAN — ACTIVE, CONTRACT SIGNED, CLOSED — AVG. PRICE PER SQ. FT.

DOWNTOWN

MANHATTAN — ACTIVE, CONTRACT SIGNED, CLOSED — AVG. PRICE PER SQ. FT.

ACTIVE CONTRACT SIGNED CLOSED

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

$7,000

HARLEM UWS UES MIDTOWN WEST BILLIONAIRE'S ROW*

MIDTOWN EAST CHELSEA WEST CHELSEA HELL'S KITCHEN

$1,7

89

$2,

301

$2,

019

$2,

705

$5,

386

$2,

819

$2,

241

$2,

472 $3,

150

$1,6

65$

1,26

3

$2,

160

$1,7

92

$2,

588

$6

,79

1

$2,

366 $3,

373

$1,7

60$1,0

89

$2,

08

9

$1,9

52

$5,

763

$2,

030

$2,

06

3

$2,

88

1

$1,6

59

FINANCIAL DISTRICTEAST VILLAGE LESWEST VILLAGETRIBECANOHOSOHOGREENWICH VILLAGE

FLATIRONGRAMERCYPARK

ACTIVE CONTRACT SIGNED CLOSED

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

$7,000

$2,

121 $

3,55

9

$2,

98

1

$2,

810

$2,

741

$3,

037

$2,

542

$3,

08

6

$3,

561

$2,

022

$2,

284

$2,

213$3,

116

$2,

44

6

$2,

49

2

$2,

715

$3,

154

$2,

09

6

$1,7

75 $2,

548

$2,

105

$2,

355

$2,

268$3,

165

$2,

48

8

$3,

159

$1,6

27

* Billionaire’s Row comprised of: 157 W 57th, 20 W 53rd, 432 Park Ave, 21 E 61st, 22 CPS, 53 W 53rd

HPDM | HPDMNY.COM | 2016 Year-End Report | 8

Analysis by Unit TypeMANHATTAN AND BROOKLYN

MANHATTAN — MEDIAN PRICE PER UNIT TYPE

BROOKLYN — MEDIAN PRICE PER UNIT TYPE

MANHATTAN — TOTAL UNITS BY BEDROOM

BROOKLYN — TOTAL UNITS BY BEDROOM

$2M

$4M

$6M

$8M

$10M

$12M

$14M

$16M

$18M

0

1000

800

600

400

200

1200

5 BED4 BED3 BED2 BED1 BEDSTUDIO

NUMBER OF UNITS

781

88

1013781

348100

ACTIVE CONTRACT SIGNED CLOSED TOTAL NUMBER OF UNITS

$1.2

0M

$1.5

4M

$3.

01M

$5.

75M

$8

.35M

$17

.55M

$8

28K

$1.4

5M

$2.

92M

$5.

30M

$8

.03M

$14

.63M

$78

5K

$1.4

4M

$2.

72M

$5.

15M $

8.15

M

$11

.55M

4 BED3 BED2 BED1 BEDSTUDIO

NUMBER OF UNITS

ACTIVE CONTRACT SIGNED CLOSED TOTAL NUMBER OF UNITS

$6

12K

$9

71K

$1.6

7M

$2.

60

M

$4

.15M

$59

5K

$6

06

K

$9

19K

$1.5

0M $2.

20M

$3.

75M

$4

.07M

$9

08

K

$1.4

0M

$3.

40

M

&'"

0

50

100

150

200

250

300

$500K

$1M

$1.5M

$2M

$2.5M

$3M

$3.5M

$4M

$4.5M

67

198

227

132

58

5 BED4 BED3 BED2 BED1 BEDSTUDIO

16

42

ACTIVE CONTRACT SIGNED CLOSED

173

228

237

153

289

154

314

257

20124

9

20

338

44

2

331

125

500

450

400

350

300

250

200

150

100

50 36 36

3876

147

4 BED3 BED2 BED1 BEDSTUDIO6

6

ACTIVE CONTRACT SIGNED CLOSED

57

67

48

23

49

8

105

47

100

57 56

47

15

46

70

29

20

160

140

120

100

80

60

40

20 10

In 2016 two bedroom units experienced the most deal volume by unit type in Manhattan, with approximately 756 two bedroom units entering into

contract or closing. Similarly, in Brooklyn two bedroom units saw the most deal volume by unit type in 2016 with 170 units entering into contract or

closing. Median Contract Signed pricing for two bedrooms in Manhattan declined 4.6% year-over-year to $2.91M, down from $3.05M in 2015. Similarly,

in Brooklyn, median Contract Signed pricing for two bedrooms declined 5.6% year-over-year to $1.5M in 2016, down from $1.59M in 2015. In Manhattan,

two bedrooms show the most Active listings at nearly 260, with three bedrooms close behind at 249. Two bedrooms also comprise the most Active

listings in Brooklyn with 57, while one and three bedrooms follow closely, both unit types showing 47 listings.

HPDM | HPDMNY.COM | 2016 Year-End Report | 9

Price Point Analysis MANHATTAN AND BROOKLYN

$0-1M$1M-2M$2M-3M$3M-4M$4M-5M$5M+

42.

4%

10.4

%

11.3

%

4.2

%

14.7

% 17.1%

$0-1M$1M-2M$2M-3M$3M-4M$4M-5M$5M+

24.7

% 32

.3%

21.5

%

11.3

%

4.3

%

6.5%

$0-1M$1M-2M$2M-3M$3M-4M$4M-5M$5M+

10.1%

27.6

%

17.8

%

9.0

%

24.6

%

10.9

%

26.4

%

$0-1M$1M-2M$2M-3M$3M-4M$4M-5M$5M+

40

.2%

38.7

%

14.1%

4.3

%

1.8%

0.9

%

$0-1M$1M-2M$2M-3M$3M-4M$4M-5M$5M+

11.2

%

16.4

%

11.6

% 8.4

%

22.6

%29.8

%

4.5

%

7.3%

13.6

% 9.0

%

$0-1M$1M-2M$2M-3M$3M-4M$4M-5M$5M+

26.6

%

39.0

%

42.4% of all Active new development listings in Manhattan are priced above $5M,

down from 49.1% at the end of 2015, and well below a high of 52% in Q1 2015. 15.6%

of Active listings remain priced above $10M, down from 22% at year-end 2015.

In Manhattan the total percentage of new development deals entering contract

from $1M to $3M rose to 45.4% in 2016, up from 37.4% at year-end 2015.

2016 PRICE POINT MANHATTAN — ACTIVE

2016 PRICE POINT BROOKLYN — ACTIVE

MANHATTAN — CONTRACT SIGNED

BROOKLYN — CONTRACT SIGNED BROOKLYN — CLOSED

MANHATTAN — CLOSED

In Brooklyn the total percentage of new development deals entering contract

priced at or below $3M rose to 93% in 2016, up from 84.6% at year-end 2015. In

contrast, the total percentage of Closed deals in Brooklyn priced at or above $5M

rose dramatically year-over-year to 25.4% in 2016, up from only 2.3% in 2015. This

reflects delivery of higher-priced new development product that entered into

contract 12 to 18 months ago.

318 W 47TH318w47.com

HPDM | HPDMNY.COM | 2016 Year-End Report | 11

Total Inventory MANHATTAN AND BROOKLYN

The largest amount of total inventory in Manhattan is concentrated in the Upper

East Side, followed closely by the Lower East Side. The Lower East Side saw a

significant jump in inventory as One Manhattan Square officially launched sales

with over 800 units slated to be built. In Brooklyn the highest total inventory

is found in Williamsburg, Prospect Heights, and Boerum Hill. The graphs

below present total inventory by neighborhood along with the corresponding

percentage of units sold.

MANHATTAN TOTAL INVENTORY

BROOKLYN TOTAL INVENTORY

0

10

20

30

40

50

60

70

80

90

100

FINANCIALDISTRICT

LESWEST EASTVILLAGE VILLAGE

TRIBECANOHOSOHOGREEN.VILLAGE

FLATIRONGRAM.PARK

HELL'SKITCHEN

WESTCHELSEA

CHELSEAMIDTOWNEAST

BN.ROW*

MIDTOWNWEST

UESUWSHARLEM

48%

36%

84%

49%

83%

46% 4% 54%

79%44%

676

45

453

60

0

183

1051

114

340

246

252 35

8

370

PERCENTAGE SOLD

58% 57%

49%61% 39%68%

35%52%

19%

TOTAL UNITS PERCENT SOLD

934

1350

80

8

105

289 38

6

80

2

200

400

600

800

1000

1200

1400

0

10

20

30

40

50

60

70

80

90

100

WILLIAMSBURGPARK SLOPEGREEN POINT PROSPECT HEIGHTS

DUMBODOWNTOWNBROOKLYN

BOERUM HILLCROWN HEIGHTSCLINTON HILLSCARROLL GARDENS

BROOKLYNHEIGHTS

78%

58%

58%

310

18

27

345

110

188

144

3632

69

166

PERCENTAGE SOLD

42%

322

52%

520

94%88%

54% 42%

69%

TOTAL UNITS

0

100

300

200

400

500

600

700

800

PERCENT SOLD

74%

Total Inventory is defined as all new development units, both currently listed as either

Active, Contract Signed, or Closed, as well as those units not yet released to the

market. Available Units is defined as new development units that are either currently

listed as Active or those not yet released to the market. These numbers include units

released prior to 2016, provided they are in a project that has not sold out all sponsor

units. This data provides a comprehensive look at new development inventory by

including unreleased units.

* Billionaire’s Row comprised of: 157 W 57th, 20 W 53rd, 432 Park Ave, 21 E 61st, 22 CPS, 53 W 53rd

HPDM | HPDMNY.COM | 2016 Year-End Report | 12

Further Insight

Downtown Manhattan continued to experience the most new development

activity by volume in 2016, followed by Brooklyn and the Upper East Side. In

Manhattan, over 2250 units were sold in 2016 (Contract Signed and Closed),

a decline of 6.8% year-over-year from approximately 2400 units in 2015. In

Brooklyn, nearly 550 units were sold in 2016, down from just over 600 units sold

in 2015, a decline of 9.2%.

One bedroom and two bedroom units in Brooklyn remain more efficiently sized than

those in Manhattan. Median size for one bedroom units in Brooklyn is 686 sq.ft., while the

median for one bedroom units in Manhattan is 789 sq. ft. Median size for two bedroom

units in Brooklyn is 1151 sq.ft., while the median for two bedroom units in Manhattan is

1442 sq. ft.

NEW DEVELOPMENT LISTINGS BY NEIGHBORHOOD MEDIAN SIZE (SQ. FT.) BY UNIT TYPE

BKLYN**UPPERMANHATTAN

DOWNTOWNBNROW*

MIDTOWNWEST

MIDTOWNEAST

UWSUES

ACTIVE CONTRACT SIGNED CLOSED

125 66

64

62

37

46

4

48 18

6

125

107 19

2

84 105

5

46

0

91

370

153

78 11

706

78

177

66 100

200

300

400

500

700

600

UNITS

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

5,000

5 BR4 BR3 BR2 BR1 BRSTUDIO

MANHATTAN BROOKLYN

510

789

2,26

2

452

68

6

1,734

1,44

2

1,151

3,19

0

4,3

11

2,59

1

2,77

7

SQ.FT

MANHATTAN AND BROOKLYN

Contact

445 Park Avenue, 10th Floor | New York, NY 10022

HPDMNY.com

212 521 5757

The Hendrik

Boerum Hill

thehendrik.com

51 Jay Street

DUMBO

51jayst.com

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