Condo Shortage on Brooklyn Waterfront

The Williamsburg and Long Island City waterfronts are plagued by a shortage of condos, claims Modern Spaces CEO Eric Benaim. The brokerage’s first Brooklyn sales market report separates the Williamsburg waterfront from the rest of the neighborhood to better analyze price trends, explained an article in The Real Deal. Can you guess the average price per square foot along the shore, dubbed “Williamsburg West”? For closed sales in the first half of this year: $917. That’s practically Dumbo and Brooklyn Heights territory. Actual apartment sale prices averaged $617,004 and $939,643 for one- and two-bedroom units, respectively. Developers are eager to respond to demand with condos, according to Benaim, but banks won’t finance the projects. Without tax exemptions, developers can’t afford to build new luxury units, according to The Real Deal. “Everything that’s being developed right now is hitting the market as rentals,” Benaim said. Check out a graph of prices by unit size on the jump…
Prices Rise for Smaller LIC Condos as Supply Wanes [TRD]
Photo by ajfis2

9 Comment

  • But but all the naysayer morons said there was gonna be a glut of apartments

  • The banks are missing out on key revenue right now. So many are stuck in the mindset that, because they wouldn’t make money on condos in Las Vegas, they wouldn’t make money on condos in Brooklyn. The real estate market is not the same everywhere, and in New York it’s white hot!

  • Condo’s selling for +1000psf don’t need a tax exemption, sorry. When the neighborhood was still ‘risky’ and places were selling for 500-600 it might have made sense – but now it is unnecessary.

    If you can’t build something that sells for that much profitably without a government hand out – you should look for another profession.

  • Of course the brokers are saying there’s a shortage. If they don’t have enough high end inventory, the median sales price for the entire neighborhood will skew downward because inland Williamsburg is a bit more inexpensive. If median numbers go down, people think something is wrong, even though what’s really wrong is a lack of inventory.

  • Appropriate picture. The DEP sludge ship in front of crappy condos.

  • What andrewluke said. If the market is clamoring for more luxury condos, then let the rules of supply and demand work without perks and tax breaks. If there is REALLY this huge market out there, then the buildings will be able to be financed, and then sell out on their own without artificial propping up.

    Just because one broker doesn’t have enough apts to sell doesn’t mean there is a shortage of high end condos in Wmsburg. “Williamsburg West”? Really?

  • Banks aren’t lending, therefore developers need credits? o_O

  • Talk to buyers before you say there is a lot of product. Opposite is the case.

    RE taxes are so high that you’d then have CC/Taxes charges of of 3,4,5 dollars a foot a month too, a big inhibition. Really can’t work.

    Not a government handout, a temporary tax break. Money would not be there without the action. Been used for decades to make things happen all over USA. Of course it goes too far sometime, but by and large virtually none of the building would have happened without 421a and J51.

    The City Council threw out the baby with the bathwater on this one. Should have given smaller and quicker to go away breaks, phased by areas.

    Two major reasons large condos not happening (small ones are); taxes are over 30% on the transaction, takes a long time to complete projects. Plus you can complete rental then sell for huge number to gigantic investors.

  • Wait, were those supposed to be ‘half off’? Right, that was only for brownstones, anything else would be even more discounted. Keep looking bho…

    MM, the tax breaks are not for building the condos but for public parks, affordable housing, etc.