Photo: Dutch LIC
Over the last few years, Long Island City (LIC) has quickly gone from a primarily industrial neighborhood to one of the country’s fastest growing residential neighborhoods — with the bulk of new construction taking place in the condo submarket.
The accelerating prices in the condo submarket have caused prices in other submarkets to spike as well, according to a quarterly report released yesterday by New York brokerage Stribling.
New construction condos accounted for nearly 80 percent of all sales and 67 percent of active inventory in the third quarter. The median condo price rose 10 percent annually to $875,000, while average prices were up 5 percent to $931,000 in the third quarter.
And, while the average price per square foot for a condo rose 14 percent to $1,177 from last year, the average square footage of a condo shrunk 7 percent to 815 square feet in the third quarter.
“The increase in price in the condo submarket is starting to see a domino effect for all property types,” Stribling says in the report.
For example, co-op average prices were up 13 percent year-over-year to $403,000, and townhome average prices rose 8 percent to $1 million in the third quarter. Townhomes were the only property type to have a median and average price above $1 million.
“Prices remain competitive in LIC when compared to Manhattan and Brooklyn, and easy access to transportation also makes the market highly desirable,” Stribling’s Director of Data & Reporting Garrett Derderian tells BuzzBuzzNews.
Meantime, some 40 percent of all active inventory in LIC in the third quarter was valued over $1 million. Homes were on the market an average of 83 days, remaining relatively flat over recent quarters.
“The average days on market suggests the market is absorbing inventory as it comes available, and notably, these properties spend less time on the market than those in Manhattan and Brooklyn,” Derderian tells BuzzBuzzNews.
And while homebuyers looking to LIC as an alternative to pricier Brooklyn and Manhattan markets might not find landlords offering the same level of incentives, they will find a greater diversity in terms of inventory in LIC.
“I think you’ll find some buildings in Manhattan upping their incentive packages to compete with Long Island City,” Derderian tells BuzzBuzzNews.
Click here to read the entire report.