Condo prices in Long Island City have been steadily rising since 2010, with new development projects coming with higher rates due to the migration of new residents.
According to a report from Halstead Property Development Marketing, condo prices in the area increased by 49 percent from 2010 to 2015, jumping from $694.78 to $1,032.83 per square foot.
The highest jump in condo values happened from 2014 to 2015, with prices rising 13.1 percent from $912.89 to $1032.83 per square foot.
“The steady rise in Long Island City condo pricing can be attributed to the rapid residential population growth,ˮ said Robin Schneiderman, the senior vice president managing director of HPDM.
“Thousands of people have lived for several years in many of the rental developments built over the last decade. These renters are now becoming buyers as they are confident it is a safe investment with the prospects of further price appreciation.”
According to the report, new condos in the area are feeding an “underserved market.”
The highest price per s/f is attached to resale units that have Manhattan views on high floors. Some properties that fit this description have sold for as high as $1,800 per s/f.
The average price per s/f of active new development units come to $1,242 per s/f. Meanwhile units with signed contracts hover around $1,100.
While higher than previous numbers, the figures are still diminutive compared to Manhattan numbers. According to Corcoran Group’s fourth quarter 2015 market report, resale condos in the borough averaged $1,788 per s/f while new development sales stood at $2,142.
In spite of worries over the supposedly thinning ranks of luxury condo buyers, Schneiderman sees prices in the area continue to rise this year and beyond.
“Long Island City is one of the fastest growing neighborhoods in the United States of America when it comes to the number of planned units,ˮ he said.
“The majority of units being developed are rentals. As a result, I believe the demand for residential ownership as a primary residence or investment opportunity will continue to grow, and there are many signs that indicate a healthy residential market.
“At the end of the day, it is literally one stop into Midtown Manhattan and convenience is extremely important for many prospective purchasers.” If he turns out to be correct, the area’s new residents would have many options to choose.
According to the report, the area’s condo pipeline cuurently amounts to about 300 units with filed or accepted offering plans.