New York—HPDM recently published a study on the Long Island City (LIC) condo market, and its findings are optimistic for owners and developers alike. Among other things, the average price per square foot for closed condo deals in LIC has risen steadily each of the past five years, with a total increase of 49 percent from 2010 to 2015.
Also, the report finds, new development projects in LIC are currently providing new product to an underserved market. The average price per square foot for active new development projects is still slightly above $1200/square foot, while contracts signed are $1100/square foot. Resale units commanding the highest pricing are those with Manhattan views on high floors, and have sold for as much as $1800/square foot.
There’s a healthy condo pipeline in the neighborhood as well. The LIC condo pipeline includes about 300 units either currently filed or accepted offering plans, a number that stands in contrast to the large supply of rental units slated to come online. The rental pool is important because the breadth of the rental market provides a deep pool of future condo buyers.
Long Island City is the westernmost residential and commercial neighborhood of the borough of Queens, with a current population of about 20,000. The neighborhood was formerly home to a concentration of factories, notably bakeries, some of which have been redeveloped into residential and commercial properties in more recent years.
Condos have fairly stiff competition in the neighborhood from rental property development. One such project is the planned apartment development at 45-40 Vernon Boulevard, the site of the former Paragon Paint Factory, by Simon Baron Development, Quadrum Global, and CRE Development. The old factory won’t be bulldozed, according to plans by SHoP Architects, but rather will form the base for one of the residential towers.