A perspective of the Long Island City housing market
The Long Island City greater area
For the last few years, the greater Long Island City area, located in Queens, has been a good choice for renters leaving Brooklyn or Manhattan in search for more affordable prices. Nevertheless, more recent events show that this may be changing. The prices in Long Island City have been increasing, and in some cases they have outpaced the numbers in some Brooklyn and Manhattan neighborhoods. This information came out after a Stribling & Associates, a New York based brokerage published a report.
Among the greater Long Island City area, there are three big submarkets: Hunters Point, Sunnyside and Astoria. Currently, LIC has the fastest current pace for new development projects in the whole country. All in all, 72% of the new development occurring in LIC is comprised by condos. 85% of the sales in LIC were also made up by condos, with the average price rising 3% from last year. In the second quarter, average asking price is $1.2 million.
The last 15% can also be accounted for. 10 percent was made up of co-ops, and the last 5 percent, of townhomes. The average asking price for co-ops arose almost 40%, surpassing $500,000. As far as townhomes goes, prices jumped almost 20% from last year records. In the second quarter, the average was $1.4 million.
When it comes to inventory, Hunters Point houses most of it. Latest records show that 56% of the LIC inventory is based there. Furthermore, over 40 projects are underway there, making it not only the most sought after submarket but also the most expensive. Hence, the average asking price surpasses $1 million. This puts the neighborhood on par with some Manhattan and Brooklyn areas, signifying a 7% increase from last year. Nevertheless, the units available in Hunters Point are the smallest that Queens has to offer. On average, they only span 1,071 square feet.
Astoria, on the other hand, ranked as the second most expensive LIC submarket. There, the average apartment has not yet reached $1 million. Nevertheless, the price tag increased 27% from last year: nowadays, the average is $964,251. Even though it ranked second in price, Astoria has the largest units of the area, that surpass 1,360 square feet in average. Furthermore, this signifies a 31% increase from last year’s numbers.
In the case of Sunnyside, it remains the most affordable of the aforementioned LIC neighborhoods. Units there averaged a little over $710,000 in the second quarter, only 4% up from last year. It is important to note that even though the real estate market has grown significantly over the last few years, Sunnyside remains offering great values, especially when compared to some areas in Manhattan and Brooklyn.
What the future holds
Looking to the future, some changes that are coming to the city will further improve the LIC area real estate business. Particularly, the impending L train shutdown. This train will stop reaching Williamsburg (in Brooklyn) so it is likely some renters will change areas by 2019. The future influx of residents will make these three areas in Queens even more attractive than what they are now. Furthermore, this will mean the retail spaces available will also increase and expand.
Hunters Point will be attractive to those looking into buying and able to pay a little more for its closeness to Midtown. It is only one train stop away. As far as Astoria and Sunnyside go, they are both great choices for residents that are willing to travel a little longer (four to six subway stops) to Midtown. These residents will be rewarded with less expensive living costs.
Nevertheless, there are more impending changes. A new ferry service from Astoria to Midtown can potentially impact prices in the area too. Once the NYC ferry launches, Western Queens and LIC will be suddenly easier to access to a lot of people. The new ferry service will also cover areas from Cornell Tech on Roosevelt Island to Western Queens, meaning the student demographic will be enticed to look into properties in the LIC area. Even though prices have significantly increased in the last few years and will probably continue to do so, LIC remains as a great choice compared to Manhattan and some areas in Brooklyn. [Buzzbuzz News]