New Development Report

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

Second Quarter

BROOKLYNMANHATTAN

AVERAGE PRICE PER SQ. FT. CLOSED

$1,342AVERAGE PRICE PER SQ. FT. CLOSED

$2,192

AVAILABLE INVENTORY (UNITS)*

622AVAILABLE INVENTORY (UNITS)*

5,936

AVERAGE PRICE PER SQ. FT. CONTRACT SIGNED

AVERAGE PRICE PER SQ. FT. ACTIVE

$1,421

$1,413

$2,172

$2,576

AVERAGE PRICE PER SQ. FT. CONTRACT SIGNED

AVERAGE PRICE PER SQ. FT. ACTIVE

5.5% QoQ -6% QoQ

2017

MANHATTAN BROOKLYN

Summary Points

HPDM | HPDMNY.COM | 2017 Second Quarter Report | 2

MEDIAN PRICE PER SQ. FT.

Active $2,287 $1,396

Contract Signed $2,025 $1,312

Closed $2,057 $1,319

AVERAGE PRICE PER SQ. FT.

Active $2,576 $1,413

Contract Signed $2,172 $1,421

Closed $2,192 $1,342

MEDIAN PRICE

Active $3,905,000 $1,797,500

Contract Signed $2,475,000 $1,295,000

Closed $2,900,000 $1,318,021

AVERAGE PRICE

Active $6,682,379 $2,194,886

Contract Signed $3,759,785 $1,690,346

Closed $4,416,978 $1,796,901

TOTAL INVENTORY (UNITS)

Total 11,465 1,807

Units Available 5,936 622

% Closed or Contract Signed

48.2% 65.6%

In Brooklyn pricing continued to rise for the second consecutive

quarter. New development entering into contract averaged $1,421 PSF, up 4.4% quarter-over-quarter and 3.8% year-over-year. This is the second quarter in which pricing has eclipsed the $1,400 PSF level, the first being Q3 2016. Avg. PPSF for closed new development in Brooklyn rose 10.4% year-over-year to $1,342.

Outside of Billionaire’s Row, Harlem

experienced the largest quarter-over-quarter Avg. PPSF increase in Manhattan at 9.8% for sold units (contract signed and closed), rising to $1,207. This is a result of sales at 2231 Adam Clayton Powell Boulevard, 306 West 116th, and 285 West 110th Street.

In Manhattan, over 350 units entered into contract in Q2 2017, an increase of 6.1% quarter-over-quarter and a decrease of 22.8% year-over year from just over 450 units in Q2 2016. In Brooklyn,

over 115 units entered into contract in Q2 2017, remaining flat quarter-over-quarter, but increasing 36.4% year-over-year. These numbers include units that entered into contract and closed within the same quarter.

In Manhattan, average pricing decreased modestly for the second straight quarter. New development units entering into contract fell 2.1% quarter-over-quarter to $2,172 PSF from $2,219

in Q1 2017, but rose 2.0% year-over-year from $2,129 PSF in Q2 2016. Avg. PPSF for closed new development units rose 1.0% quarter-over-quarter to $2,192, and fell 2.1% year-over-year from $2,239 in Q2 2016.

The total number of available new development units increased 5.5% quarter-over-quarter, and 34.6% year-over-year in Manhattan to 5,936. The approval of several new condominium offering plans

including Waterline Square and 217 West 57th helped boost the total. Additionally, large-scale projects such as One Manhattan Square, Gramercy Square, 125 Greenwich, and Hudson Yards have added to the total in recent quarters. Just over 2,600 units are expected to launch sales in 2017, well below a high of nearly 9,200 units in 2006. In Brooklyn, available units decreased 6.5% quarter-over-quarter, and 28% year-over-year to approximately 620, highlighting a lean Brooklyn condominium pipeline.

10.4%

36.4%

$2,172 PSF

$1,207

5,936

HPDM | HPDMNY.COM | 2017 Second Quarter Report | 3

Introduction 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

be newly built. Resale data is not

included in this report.

§ All listings were compiled as of

6/19/17.

§§ 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 2017,

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 data provides a unique

and comprehensive analysis of the

current new development market.

TABLE OF CONTENTS

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

MARKET OVERVIEW BY QUARTER ... . . . . . . . . . . . . 6

MANHATTAN NEIGHBORHOOD INSIGHT ... . . . .7

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

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

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

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

HPDM is pleased to present our New

Development Report for Q2 2017.

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 Q2 2017 as a whole

and is a snapshot of current new

development market conditions.

In Manhattan, pricing for new

development units entering into

contract in Q2 2017 fell 2.1% quarter-

over-quarter to $2,172 PSF from $2,219

in Q1 2017, but rose 2.0% year-over-

year from $2,129 PSF in Q2 2016. Avg.

PPSF for closed new development

units rose 1.0% quarter-over-quarter to

$2,192, and fell 2.1% from $2,239 in Q2

2016. In Brooklyn, new development

entering into contract averaged $1,421

PSF, up 4.4% quarter-over-quarter

and 3.8% year-over-year. Avg. PPSF

for closed new development Brooklyn

rose 10.4% year-over-year to $1,342.

ONE PARK 320 ADOLPHUS AVENUE, CLIFFSIDE PARK, NEW JERSEY

OneParkCondosNJ.com

HPDM | HPDMNY.COM | 2017 Second Quarter Report | 5

NUMBER OF UNITS

GROUND UP CONVERSIONS NUMBER OF UNITS

100

200

300

400

500

600

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

$8,000

$7,000

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

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

19

31

75

81

4

67

401

331

$1,

20

7

$2,2

69

$1,

973

$7,2

68

$2,2

94

$2,3

39

$1,

35

6

$1,

816 $

2,7

77

$1,

59

0

$1,

83

1

$2,3

24

$1,

36

3

$1,

40

1

CONTRACT SIGNED AND CLOSED

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

Market OverviewDowntown saw the most development activity in Manhattan in Q2 2017 with more than 400 units either entering into

contract or closing. Next to Billionaire’s Row, Downtown shows the highest Avg. Active Price per Sq. Ft. at $2,678. The

highest Avg. Price per Sq. Ft. for Contract Signed deals in Q2 2017 occurred Downtown, with an average of $2,442 PSF, up

6.8% year-over-year from $2,286 PSF in Q2 2016.

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

*Billionaire's Row comprised of: 432 Park Ave, 53 W 53rd, 520 Park Avenue*Brooklyn neighborhoods tracked: Bedford Stuyvesant, Boerum Hill, Brooklyn Heights, Bushwick, Carroll Gardens, Clinton Hill, Crown Heights, Downtown Brooklyn, DUMBO, Greenpoint, Park Slope, Prospect Heights, Redhook, Williamsburg

ACTIVE CONTRACT SIGNED CLOSED

$2,3

30

$2,1

19

$6

,26

2

$2,5

04

$2,8

79

$1,

96

3

$1,

75

0

$3

,911

$2,1

43

$2,4

22

$1,

726

$1,

924

$1,

619

$4

,98

2

$1,

90

8

$2,0

17

$2,2

26

$1,

73

0

$1,

223

$2,2

48

$2,0

59

$2,0

98

$1,

179

$2,1

36

$1,

95

7

$1,

90

2

$2,0

92

$1,

75

1

$1,

96

8

$6

,19

1

$6

,36

7

$8

,170

$2,4

24

$2,0

98

$2,3

14

$2,6

78

$2,4

42

$2,2

73

$1,

413

$1,

421

$1,

34

2

HARLEM UWS UES MIDTOWN WEST BILLIONAIRE'S ROW*

MIDTOWN EAST DOWNTOWN BROOKLYN**

$9,000

$8,000

$7,000

$6,000

$5,000

$4,000

$3,000

$2,000

$1,000

HPDM | HPDMNY.COM | 2017 Second Quarter Report | 6

$2,3

25

$1,

24

5

Q3 2016 Q4 2016 Q1 2017 Q2 2017

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

$7,000

$8,000

HARLEM UWS UES MIDTOWN WEST BILLIONAIRE'S ROW*

MIDTOWN EAST DOWNTOWN BROOKLYN**

$1,

117

$1,

875

$1,

98

7

$5

,48

6

$1,

95

8

$2,3

41

$1,

378

$1,

118

$2,0

90

$1,

729

$6

,18

8

$2,1

97

$2,5

89

$1,

322

$1,

09

9

$1,

96

4

$1,

970

$5

,25

9

$2,0

98

$2,4

29

$1,

311

$1,

20

7

$1,

922

$1,

85

0

$7,2

68

$2,2

52

$2,3

35

$1,

36

2

$2,0

32

$2,2

51

$2,3

03

$2,0

79

Market Overview by Quarter

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

*Billionaire's Row comprised of: 432 Park Ave, 53 W 53rd, 520 Park Avenue** Brooklyn neighborhoods tracked: Bedford Stuyvesant, Boerum Hill, Brooklyn Heights, Bushwick, Carroll Gardens, Clinton Hill, Crown Heights, Downtown Brooklyn, DUMBO, Greenpoint,

Park Slope, Prospect Heights, Redhook, Williamsburg.

The graph below depicts pricing for Contract Signed and Closed units by quarter.

Outside of Billionaire’s Row, Harlem experienced the largest quarter-over-quarter

increase in Average PPSF at 9.8%, rising to $1,207, due to sales at 2231 Adam

Clayton Powell Boulevard, 306 west 116th, and 285 West 110th Street. Midtown

East experienced the second largest quarter-over-quarter increase, rising 7.3% to

$2,252 PSF in Q2 2017, due largely to closings at 252 East 57th Street. Meanwhile,

Avg. PPSF in Brooklyn rose 3.9% quarter-over-quarter.

HPDM | HPDMNY.COM | 2017 Second Quarter Report | 7

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

Manhattan for Q2 2017 was $3,162 PSF, achieved in the Flatiron district with sales at

45 East 22nd, followed closely by Greenwich Village at $3,121. The highest average

Closed pricing outside of Billionaire’s Row occurred in the West Village at $3,547

PSF due to sales at The Greenwich Lane, followed by Midtown West at $2,544 PSF.

*Billionaire's Row comprised of: 432 Park Ave, 53 W 53rd, 520 Park Avenue

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.

Harlem UWS UES MidtownWest

MidtownEast

Chelsea WestChelsea

Hell’sKitchen

GramercyPark

Billionaire’sRow*

ACTIVE CONTRACT SIGNED CLOSED

$2,000

$1,000

$3,000

$4,000

$7,000

$6,000

$8,000

$9,000

$5,000

$1,

73

0

$2,2

48

$2,0

59

$2,0

98

$2,13

6

$1,9

57

$1,

90

2

$2,9

19

$2,7

30

$2,5

44

$6

,19

1

$6

,36

7

$8

,170

$2,4

24

$2,0

98

$2,3

14

$2,5

38

$2,1

62 $3

,29

3

$2,8

44

$2,0

62 $

1,6

67

$1,

654

$1,529

$1,

69

1

$1,

575

$1,

223

$1,

179

$2,0

96

Flatiron GreenwichVillage

SoHo NoHo LES FinancialDistrict

TriBeCa WestVillage

EastVillage

ACTIVE CONTRACT SIGNED CLOSED

$2,7

41

$2,8

50

$3

,121

$2,1

18$3

,16

2

$2,5

38

$2,7

01

$2,5

06

$2,2

00 $3

,656

$2,7

75

$3

,54

7 $1,

675

$2,6

28

$2,2

68

$2,2

69

$2,2

73

$2,18

1

$2,1

68

$2,19

7

$2,7

96

$2,9

07

$2,9

10

$2,4

04

$2,176$2,000

$1,000

$3,000

$4,000

$7,000

$6,000

$8,000

$9,000

$5,000

HPDM | HPDMNY.COM | 2017 Second Quarter 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

$4M

$2M

$6M

$8M

$10M

$12M

$16M

$14M

48

367

530

434

43

5 BED4 BED3 BED2 BED1 BEDSTUDIO

500

400

300

200

100

600

700

NUMBER OF UNITS

ACTIVE CONTRACT SIGNED CLOSED TOTAL NUMBER OF UNITS

$75

5K

$1.

07M

$1.

32M

$1.

33

M

$1.

39

M

$1.

61M

$2.8

M

$2.6

1M

$2.9

5M

$5

.40

M

$5

.08

M

$5

.73

M

$9

.59

M

$11

.01M

$8

.43

M

$14

.58

M

$13

.98

M

$12

.58

M

193

4 BED3 BED2 BED1 BEDSTUDIO

NUMBER OF UNITS

ACTIVE CONTRACT SIGNED CLOSED TOTAL NUMBER OF UNITS

$6

25

K

$8

92K

$1.

61M

$2.6

5M $

3.7

7M

$6

20

K

$8

90

K

$1.

47M

$2.1

5M

$4

.0M

$8

84

K

$6

05

K $1.

63

M

$2.5

0M

50

100

150

200

250

300

$1M

$2M

$3M

$4M

$5M

$6M

31

176 140 10552

$3

.7M

5 BED4 BED3 BED2 BED1 BEDSTUDIO

22

7

ACTIVE CONTRACT SIGNED CLOSED

177

29

7

26

3

136

84 10

2

58

19

4

106 13

1

113

38

50

100

150

200

250

300

350

400

10 16

32

4 BED3 BED2 BED1 BEDSTUDIO

66

ACTIVE CONTRACT SIGNED CLOSED

43

59

47

182

37

28

18 6

96

53

40

21 28

120

100

80

60

40

20

8

In Q2 2017 two-bedroom units continued to experience the most deal volume by unit type in Manhattan, with over 230 two-

bedroom units entering into contract or closing. In Brooklyn, one-bedroom units saw the most deal volume with more than

130 units entering into contract or closing. Median Contract Signed pricing for two-bedrooms in Manhattan remained flat

quarter-over-quarter at $2.61M, while dropping 1.8% year-over-year from $2.66M in Q2 2016. In Brooklyn, median Contract

Signed pricing for one-bedrooms rose 1.5% year-over-year to $890,000, up from $877,000 in Q2 2016. In Manhattan, two-

bedrooms show the most Active listings at nearly 300, with three-bedrooms close behind at just over 260. Two-bedrooms

also comprise the most Active listings in Brooklyn with 59, while three and one-bedrooms follow closely with 47 and 43

units respectively.

HPDM | HPDMNY.COM | 2017 Second Quarter Report | 9

Price Point Analysis MANHATTAN AND BROOKLYN

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

38

%

11.6

%

10.3

% 6.2

%

16.8

%

17.1

%

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

21.

3%

36

.5%

19.1

%

10.7

%

3.4

%

6.2

%

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

34

.9%

18%

6.5

%

10.8

%

23

%

6.8

%

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

42.9

%

33

%

11.0

%7.7

%

3.3

%

2.2

%

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

7.2

%

15.7

%

10.4

%

10.8

%

27.7

%

28

.2%

3.3

%

1.3

% 12.5

%

14.6

%

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

40

.4%

27.9

%

38% of all Active new development listings in Manhattan are priced above $5M, well

below a high of 52% in Q1 2015. Meanwhile, 15.4% of Active listings remain priced

above $10M, essentially unchanged year-over-year.

Q2 2017 PRICE POINT MANHATTAN — ACTIVE

Q2 2017 PRICE POINT BROOKLYN — ACTIVE

MANHATTAN — CONTRACT SIGNED

BROOKLYN — CONTRACT SIGNED BROOKLYN — CLOSED

MANHATTAN — CLOSED

In Manhattan, the total percentage of new development deals entering contract

under $5M rose to 77% from 72.4% in Q1 2017. Conversely, the percentage of deals

over $5M fell to 23% from 27.6% quarter-over-quarter.

HPDM | HPDMNY.COM | 2017 Second Quarter Report | 10

THE CLARE 301 EAST 61ST, MIDTOWN EASTTheClareNYC.com

HPDM | HPDMNY.COM | 2017 Second Quarter Report | 11

Total Inventory MANHATTAN AND BROOKLYN

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

District, followed closely by the Upper East Side and the Lower East Side. 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

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

66%

38%

18% 57%

71%

48%

21%

63%

38%35%

577

34

39

1

1,3

44

152

1,16

3

114

212

46

8

372 45

9

812

PERCENTAGE SOLD

77%

52%60%62%

23%

44%44%67%

21%

TOTAL UNITS PERCENT SOLD

1,12

0 1,276

45

6

21

54

3

33

8

74

6

200

400

600

800

1000

1200

1400

1600

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

PROSPECTHEIGHTS

GREENPOINTDUMBOBOERUM HILLCLINTON HILLCARROLL GARDENS

BROOKLYNHEIGHTS

85%

65%60%

PERCENTAGE SOLD

274

136

29

5PARK SLOPE

50%

92

WILLIAMSBURG

58% 50

9

80

157

89

66%

63%

79%

TOTAL UNITS PERCENT SOLD

100

200

300

500

400

600

32

94%

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 2017, 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: 432 Park Ave, 53 W 53rd, 520 Park Avenue

HPDM | HPDMNY.COM | 2017 Second Quarter Report | 12

Further Insight

Downtown Manhattan continued to experience the most new development

activity by volume in Q2 2017, followed closely by Brooklyn. In Manhattan, over

350 units entered into contract in Q2 2017, a decrease of 22.8% year-over year

from just over 450 units in Q2 2016. In Brooklyn, over 115 units entered into

contract in Q2 2017, a 36.4% year-over-year increase from just over 85 units in Q2

2016. These numbers include units that entered into contract and closed within

the same quarter.

Two-bedroom units in Brooklyn remain more efficiently sized than those in Manhattan,

while one-bedrooms are becoming more similarly sized in each borough. Median size for

two-bedroom units in Brooklyn is 1171 sq.ft, while the median for two-bedroom units in

Manhattan is 1400 sq. ft. Median size for one-bedroom units in Brooklyn is 712 sq.ft, while

the median for one-bedroom units in Manhattan is 791 sq. ft.

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

BKLYN**UPPERMANHATTAN

DOWNTOWNBNROW*

MIDTOWNWEST

MIDTOWNEAST

UWSUES

ACTIVE CONTRACT SIGNED CLOSED

74

63

78 5

6

35

56

3

65 178

28

15 20 47

44

37

2

148

21 13

5

47

16 2

25

3

13

24

0 100

200

300

400

500

600

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

56

6 79

1 2,2

23

46

1 712

1,70

2

1,4

00

1,11

71

3,2

76

4,6

08

2,4

24

2,8

99

*Billionaire's Row comprised of: 432 Park Ave, 53 W 53rd, 520 Park Avenue** Brooklyn neighborhoods tracked: Bedford Stuyvesant, Boerum Hill, Brooklyn Heights, Bushwick, Carroll Gardens, Clinton Hill, Crown Heights, Downtown Brooklyn, DUMBO, Greenpoint,

Park Slope, Prospect Heights, Redhook, Williamsburg.

MANHATTAN AND BROOKLYN

Contact

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

HPDMNY.com

212 521 5757

6 Cortlandt AlleyTribecaSixCortlandtAlley.com

51 Jay StreetDUMBO51JaySt.com

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