Photo: Franck Michel/Flickr
A notable increase in new development closings pushed Brooklyn apartment prices to record levels in the first quarter of 2017. Overall condo, co-op and townhouse prices climbed to record highs over the same period last year, while the price of new development condos skyrocketed, according to a newly released market report by New York brokerage Brown Harris Stevens (BHS).
The average price of a Brooklyn apartment — which includes both condos and co-ops — increased 38 percent from last year to $922,134 in the first quarter of 2017. While the median price rose to $670,000 in the first quarter from the $570,000 recorded the same time last year. Both the median and average price were record highs for the borough, says BHS.
The average price per square foot of a condo jumped to $961 in the first quarter of 2017 from $790 recorded last year, while it remained flat year-over-year for co-ops.
New development prices averaged $1.2 million in the first quarter, an increase of nearly 70 percent year-over-year.
Townhouses also recorded record-high median and average sale prices in the first quarter, at $870,000 and $1 million, respectively. The average townhouse price recorded an 11 percent year-over-year increase.
In the Brownstone Brooklyn submarket — which includes the Park Slope, Gowanus, and Brooklyn Heights neighborhoods — apartment prices saw a marked increased spurred by new development closings. The average price, including both co-ops and condos, rose to $1.3 million in the first quarter, up from the $929,120 average price recorded last year.
“The Brooklyn condominium market is very healthy due to years of under supply and a focus upon rental housing by many developers in the early and mid 2000’s. This created a tremendous feeder community of potential buyers many of whom used leasing as a way to test out living in Brooklyn,” said BHS Development Marketing President Stephen G. Kliegerman.
Now, after years of “testing out” Brooklyn-living, residents are choosing to remain in the hot borough.
Kliegerman added that because the Brooklyn market was undervalued for years, prices are now increasing as people begin to recognize the borough’s true potential. But, will prices continue to appreciate at the pace seen in recent years?
“Probably not, but we have seen a steady demand for higher end product in Brooklyn, and there were more sales over $3 million than ever in the past year. I do not see that trend changing as better projects come to market,” he forecasted.
And Kliegerman noted that while properties across the river in neighboring Long Island City are easier on the wallet, the neighborhoods lack the cultural diversity and rich history of New York City’s second favorite borough.
Click here to read the entire report.