Housing Reform Sends NYC Multifamily Sales Tumbling Per PropertyShark Report

A new report from PropertyShark indicates that the Housing Stability and Tenant Protection Act of 2019 (TPA) has adversely affected Multifamily sales in NYC. Per the report, multifamily sales are down 76% in volume year over year totaling only $284 million across Manhattan, Bronx, Brooklyn and Queens. At the same time last year, sales numbers were at $837 million for the time period.

PropertyShark analyzed multifamily sales in Manhattan, Brooklyn, Queens and the Bronx for the month of September to get as they say get “an accurate snapshot of the situation on the ground”. Besides finding that sales were down 76%, they also found that sales activity was down 34% against 2018 and there were only 55 deals during this period. That amount to the slowest period in the last 33 months. The volume of multifamily units also are down significant. The report states that sales of units transferred was halved. They state “only 1,146 multifamily units traded hands last month across the four boroughs, while September 2018 saw 916 units traded in the Bronx alone.” Across the four boroughs being reports units transferred was down 51% during the period. 14,509 multifamily units were sold wherein 25,368 was sold during the same period last year.

Across the 4 boroughs here is what the breakdown is:

Manhattan- The majority of the multifamily loss starts in Manhattan as it makes up more than half of sales for NYC and is the influential borough that affects the others. The report indicates that sales dropped significantly by 81% year over year. Sales amounted to $163 million for the month which is a significant dropoff from the $837 million the year before. Sales activity dropped 71% with only 5 deals closed.

Brooklyn- Brooklyn sales volume was down 68% from the same period last year. There were 21 deals that closed with the volume coming in at $57 million. The units traded were also down substantially. For the first 9 months of the year 3,639 units were transferred. In comparison 14,006 were traded during the same period last year.

Bronx- Bronx sales activity was down 64% with only 8 deals closing in the period. Sales volume came in at $28 million which is down a whopping 82% from 2018. Year to date sales are down 15% at $777 million. The report also indicates that prices were down 27% to $128,041 from 2018.

Queens- Queens was the only borough that showed positive figures. In the borough, there was a 100% increase in sales at $29 million which is up from $14.5 million from 2018. There was an 86% of sales activity as 147 units were transferred in 13 deals.

BJD Property Management is a full service NYC property management company servicing the boroughs of Queens, Brooklyn, Manhattan and the Bronx.  Whether it be a 1 bedroom condo or multi-family building we are able to assist our clients maximize their investments.

http://bjdpropertymanagement.com/housing-reform-sends-nyc-multifamily-sales-tumbling-per-propertyshark-report/

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Total Number Of NYC Investment Sales Down But Monetary Value Ticks Higher According To Report

The Real Estate Board of New York (REBNY) released their Investment Sales Report for the first half of 2019. The report indicates that there were 1,750 total transactions for the period with a monetary value of $22.4 billion. The total number of transaction were down 17% year over year but the monetary value during that same period increased 3%.

The report states that the monetary value was assisted by 5 commercial and retail sales. The 5 sales alone comprised a value of $5.15 billion. This bolstered the consideration for retail property to $2.56 billion which was an increased of 46% from the second half of 2018 and 30% year-over-year. Sales consideration for office buildings for the period was $6.95 billion which was an increase of 7% from the second half of 2018 and 12% year-over-year. It is noted that office buildings as a whole represented the majority of citywide total consideration (31%). James, Whelan, REBNY President believes that the outlook remains positive going in the future. He states “Although several large transactions buoyed the first half of the year, the total number of transactions in the five boroughs declined significantly. We remain confident in the economic outlook for New York City and hope to see a stronger second half of the year in terms of total investments.”

Sales consideration increased in the boroughs of the Bronx, Brooklyn and Queens. We saw a decrease in Manhattan and Staten Island. Here are the figures according to the boroughs below:

Manhattan:  Sales in Manhattan came in at $14.1 billion which was a 3% increase in consideration year-over-year. The total amount of transactions were down 22% year over year.

Queens: Sales amounted to $2.41 billion seeing an 11% increase in consideration year-over-year. The number of Queens sales transactions are down 12% year-over-year.

The Bronx: Sales were at $1.33 billion amounting to a 15% increase in consideration year-over-year. Bronx investment sales transactions down 32% year-over-year.

Brooklyn: Sales valued at $4.3 billion which is a 2% increase in consideration year-over-year. Transactions in Brooklyn decreased 20% year- over-year.

State Island: Investment sales totaled $219 million which is a 24% decrease in consideration year-over-year. The total amount of transaction are also down 11% for the period.

In the multi-family sectors:

“Multifamily Rental, Elevator: In Manhattan, multifamily rentals with an elevator accounted for 36 sales or 11% of the borough’s transactions. Those 36 transactions made Manhattan the borough with the most transactions in the five boroughs. Citywide, there were 81 transactions that accounted for 5% of overall transactions.

Multifamily Rental, No Elevator: In Manhattan, multifamily rentals without an elevator accounted for 108 sales or 33% of the borough’s transactions. By number of transactions, this was the most active property category in Brooklyn, which registered 249 sales accounting for 44% of the borough’s transactions.” With the new housing laws going into place it will be interesting to see how much of a decrease we will see in volume and sales consideration we will see in next half year’s report.

BJD Property Management is a full service NYC property management company servicing the boroughs of Queens, Brooklyn, Manhattan and the Bronx.  Whether it be a 1 bedroom condo or multi-family building we are able to assist our clients maximize their investments.

http://bjdpropertymanagement.com/total-number-of-nyc-investment-sales-down-but-monetary-value-ticks-higher-according-to-report/

Visit us at bjdpropertymanagement.com