The Long Island City skyline (Photo: Queens Post)
Aug. 10, 2023 By Ethan Marshall
Modern Spaces LIC’s recently released sales report on the second quarter of 2023 indicates a strong performance when it comes to sales and bodes well for the next quarter to trend in a similar direction.
According to Modern Spaces President and CEO Eric Benaim, despite economic issues like inflation still being an issue, they have still been able to effectively make sales of units. He noted the only type of decrease in sales compared to the previous quarter was in the number of studio apartments.
Additionally, Benaim noted that the average price per square foot for their units has been increasing.
“There’s been less of a demand for ownership of studios right now,” Benaim said. “I think people are just more open to adding a little more money into buying a one-bedroom unit, which is why you’re seeing a higher jump in one-bedrooms.”
Astoria Condos experienced a 12% increase in closed prices this quarter compared to the second quarter of 2022, from $986 per square foot to $1,084, according to the Modern Spaces report. Closed prices per square foot rose 11% from last quarter’s $969 and market prices per square foot increased 4% compared to last year. In contract, volume experienced the highest growth, rising 73% compared to last year. The in contract prices rose 2% from the previous quarter here.
Flushing Condos had a 44% increase in closed prices compared to last year, from $892 per square foot to $1,149. Despite a 1% increase in closed prices per square foot from last quarter’s $1,137, in contract prices decreased by 5% from last year. There was also a 6% decrease of on the market value compared to 2022. However, there was a 43% increase of in contract prices.
The net rent at Long Island City Rentals experienced a 22% rise compared to last year, from $4,224 to $5,179. The net rent price per square foot went up 8% during that span. Also over this span, the rental unit volume increased 6%.
Astoria Rentals had a 24% yearly increase in net rent, from $3,055 to $3,813. Despite a 14% decline in rental unit volume over this span, the net rent price per square foot went up 11%.
Long Island City Condos experienced an annual decrease in closed prices by 9%, from $1,413 per square foot to $1,395. However, compared to the previous quarter, closed prices per square foot went up 3% from $1,357. On the market prices per square foot went down 5% from the previous year, but in contract volume decreased 32% over that same period of time. In contract prices rose 10% compared to last quarter.
Luxury Rentals in Long Island City and Astoria showed growth this quarter, with increases in rent prices per square foot across all unit types. The price declines experienced by some condo markets was offset by growth in other markets. Overall, expansion was experienced by rental sectors.
One factor Benaim credits for this quarter’s increase in traffic is there isn’t as much uncertainty or concern from the public about rates increasing. This time of year is also typically when there are more buyers and renters out looking for units.
“I think we’re going to have a really great next quarter,” Benaim said. “Judging from the numbers we’re putting up right now, I think we’re going to outperform all the numbers from this past quarter. We’re excited about the market and feel it’s turning around compared to last year.”
Benaim noted in the quarterly report that as the market landscape evolves, strategic monitoring and adaptation will become critical in order to effectively navigate the dynamic real estate environment.
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