Whether it be a studio apartment or a 2 bedroom, condo prices in Long Island City continue to soar to new heights.
The average sales price for a Long Island City condo jumped 25 percent in the fourth quarter of 2016, compared to the same period in 2015, according to the latest market report released by Modern Spaces today.
The average price paid for a studio in the fourth quarter was $745,000, up from $545,000 for the fourth quarter in 2015. The average paid for a 1 brm was $882,000, up from $783,000 for the same period in 2015.
Meanwhile, the average paid for a 2 brm in the fourth quarter was $1,210,000, up from $1,170,000 a year prior.
Eric Benaim, the chief executive of Modern Spaces, attributed the big increases to a plethora of factors.
He said that condo prices in Manhattan and Brooklyn are extremely high, which has made Long Island City an attractive alternative. He said that most of the units in Long Island City are priced between $700,000 and $2,000,000, a reasonable price for many first and second time home buyers seeking new construction.
Furthermore, Benaim said that the influx of new residents into the area–most of whom are renters– has boosted the number of interested buyers.
“Many people rent for a year or two and then become attached to the neighborhood and want to buy,” Benaim said.
In contrast to the condo market, the Long Island City rental market remains flat.
The cost to rent a luxury Long Island City apartment in the fourth quarter of 2016 was little changed from that of 2015.
A luxury studio went for $2,410 in the fourth quarter of 2016, compared to $2,430 for the same period in 2015, according to the report. For a one bedroom the 4Q figure was $3,010, compared to $3,030.
There was an increase in the rent for 2 bedrooms, with the 4Q16 figure coming in at $4,530, compared to $4,290.
Benaim anticipates that the Long Island City rental market will soften. “In general we see the rental market continue to plateau due to the newest influx of rentals.”
For the full report, please click here.