The Long Island City condo market has continued to show significant signs of growth, reaching and even surpassing all-time highs in pricing and sales volume achieved in 2019, according to a new report by Modern Spaces.
The average price per square foot of closed units reached an all-time high of $1,424 this quarter, while the number of units closed rose a massive 236% compared to the same time period last year.
The report found a 21% yearly increase in closed prices and a 47% quarterly increase in closed volume.
The average contract price per square foot of units increased 8% this quarter at $1,475, nearly reaching the all-time high seen in 2019, which was at $1,502.
Recent demand for the new luxury development projects in Long Island City has accelerated despite a slowdown in 2020 amid the COVID-19 pandemic. The report predicts this trend will continue through the rest of the year and into 2022.
The Astoria condo market nearly reached an all-time high in the price of closed units this quarter, with the average price per square foot increasing quarterly by 5%.
The condo market also experienced a significant uptick in the volume of closed units, with an increase of 200% compared to the same time period in 2020.
This quarter’s closed price saw a 12% increase from last quarter, while the closed price per foot had a yearly increase of 7%.
The average price of units in contract was up 29% year over year, while the average price of units on the market rose 4% since the last quarter of this year. In all, the in contract price per square foot had a 1% yearly decrease.
Much like the LIC market, the Astoria condo market has continued to attract tenants to new developments projects in the area.
The Flushing condo market also saw a rise in the volume of closed units during the second quarter of this year, with a 60% increase from last quarter. The average price of closed units in Flushing rose 13% year over year.
The volume of units in contract rose 62% compared to last quarter, although the average market price per square foot of units in contract was down 9% quarterly and 7% yearly.
Much like the LIC and Astoria condo markets, the Flushing market is continuing its trend upwards in 2021.
The volume of units rented in LIC skyrocketed, rising 38 percent since last quarter and 101% year over year. The average net rent rose 15% to $3,316, while the average net price per square foot rose 18% to $55.
The largest price increase was seen in three-bedroom units, with a 29% quarterly increase. There is continued demand for luxury rentals in LIC, as there has been a spike in leasing activity despite a reduction in concessions being offered, according to the report.
The Astoria rental market reached new highs, thanks to the introduction of a new luxury rental project named The Astor LIC, which sits on the border of LIC and Astoria.
The average net price per square foot rose 28% since last quarter and 12% year over year, reaching an all-time high of $54. The volume of units rented in Astoria increased by 111% since last quarter as well.
The large increase in the number of units rented, as well as increasing gross and net rental figures, indicates that the LIC and Astoria rental markets will continue their upward trend over the next quarter and into 2022, according to the report.