LIC condo prices pass $1,000 psf in Q1

But rents in the area remained largely static due to influx of new inventory

(Credit: Modern Spaces)
(Credit: Modern Spaces)

Condominium prices in Long Island City crossed the $1,000 per square foot mark in the first quarter of 2015, according to a new report by brokerage Modern Spaces.

The average price per foot in the neighborhood was $1,039 in the first quarter, and the average absolute price was $877,778, according to the report.

“The demand for new homes here remains strong and will continue to drive prices higher,” said Eric Benaim, founder and president of Modern Spaces. During the same time period last year, the average per-square-foot price for condos was $930, the report said.

From left: Condo towers in Long Island City and Eric Benaim

From left: Condo towers in Long Island City and Eric Benaim

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In the rental market, rents stayed relatively stable as any increase in demand was countered by an influx of new inventory, according to Modern Spaces, which noted that unit sizes were shrinking in the face of soaring land prices and construction costs. The average price for a rental in a walk-up in the neighborhood was $2,458, according to the report.

Neighboring Astoria didn’t see a lot of transactions in the first quarter of the year, Benaim said, mostly due to a lack of new product.

But, Benaim said, he predicts that will change. Prices in Astoria will shoot up to nearly $1,000 per square foot by the third quarter of the year, he said. Modern Spaces is launching at least two new projects in the neighborhood this year.

“You can literally live in Astoria and never leave,” Benaim said. “Prices are going to go up dramatically.”

New Jersey-based Kushner Real Estate Group recently picked up a minority stake in Modern Spaces.