In the wake of COVID-19, a pocket of NYC real estate has heated up: new condos with private outdoor space.
According to Marketproof New Development research, buyers are paying a premium to get outdoor space. For example, among new Manhattan condos sold since March 2020 (when COVID struck the market), the PPSF for sales with outdoor space is $2,665, while the PPSF for condo sales without outdoor space is $2,115. Notably, there was only a minor difference in the PPSF of condos with and without outdoor space before the pandemic. In the period of March 2018 through March 2020, Manhattan new condo buyers paid $2,433 psf for condos with outdoor space. They paid $2,310, just 5% less, for condos without outdoor space.
“The data suggest that COVID had a significant material impact on New York condo buyers’ willingness to pay extra for outdoor space,” said Kael Goodman, CEO and co-founder of Marketproof.
The good news for buyers
Just about 29% of the new condo units currently available in NYC include private outdoor space. Marketproof New Development, which mines government filings by building developers to access thousands of unlisted off-market properties, shows that more than 4,300 units with outdoor space are currently available. Less than 10% of these are listed on publicly available listing sites.
Most outdoor space is on the more modest side of things, at less than 200 square feet of space.
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All price points can come with outdoor space
Units of all sizes come with outdoor space, from small studios with balconies, to 1- and 2-bedroom garden apartments, to large 3 and 4-bedroom penthouses with wrap-around terraces and roof decks.
The floor plan below is for a 2-bed, 2.5-bath penthouse at 98 Front, a Hopestreet condo in Dumbo, Brooklyn. This unit has 1,394 sf of interior space and a 221 sf terrace. This property is not currently listed on public sites. The last listed price for the unit was $2.75m.
Generally, larger outdoor spaces belong to larger units, though there are studio and 1-bedroom units with more outdoor than interior space.
For example, below is a floor plan for a 797-square foot 1-bedroom unit with a 1,602 square foot terrace. This property is in the 801-unit, 67-floor Skyline Tower in Long Island City. It was last listed for $1,367,095.
Choosing to pay the premium
According to Marketproof research, outdoor space can result in 10-50% price premiums when compared to similar properties without outdoor space.
Of course, all outdoor space is not the same. The common types include:
So, when evaluating whether to pay the premium, there are a variety of things to consider:
- Amount of space
- Type of space
- Amount of natural light
- Privacy of the space
- Noise levels
- Proximity to parks and trees
- Presence of birds and other wildlife
- Finishes and condition of the space
- Amenities like an outdoor grill and built-in fixtures
- Access to water and the ability to grow plants or garden
- Aesthetic appeal
How to find your space
Whether you are an agent looking for a client, researching for yourself what NYC has to offer, or scaling your firm’s investment portfolio, we recommend giving Marketproof New Development a try.
By using Marketproof New Development you will be able to search both publicly listed properties and unlisted off-market properties not available on popular listing sites.
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Top photo courtesy of 10 Lenox Ave, Brown Harris Stevens.