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.
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.