Soaring land prices in Long Island City are hitting record highs for the neighborhood, according to the Moderns Spaces 3Q report released Thursday.
The price per buildable square in LIC jumped to an unheard of $250-$300 in this past quarter for some properties, the report said. The average land prices are above $200 in prime areas.
The price surge is mainly due to the demand for bigger projects aimed at larger family-size apartments, according to the report.
“The properties that are being acquired at those price points will most likely all be condos as they don’t make financial sense as a rental product with that high of a land base,” the report said. “But as condo prices rise in Manhattan and in Brooklyn, it’s naturally going to drive the buyer who is getting priced out of the areas to Long Island City or Queens as a whole.”
Meanwhile, for commercial and investment properties, the report found that in south Long Island City — areas near the waterfront, Hunter’s Point, Court Square, and Queens Plaza — land values eclipsed an average of more than $200 per buildable square foot and some properties have hit prices almost as high as $300.
But Modern Spaces predicts this trend will not continue.
“Despite demand being as strong as it has ever been, we predict the market will level in the $225 – $250 per buildable square foot range depending on exact location,” the report said.
Although land prices in Astoria have not hit an average of $200 per buildable square foot yet, not to be left too far behind, land prices in the neighborhood doubled in the past year with some properties eclipsing $200 per buildable square foot, according to the report.
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