Williamsburg New Property Prices Jump 52 Percent in 3 Months, Report Says
WILLIAMSBURG — Buying new property in Williamsburg just got more expensive, according to a report.
Median sale prices for new units went up 52 percent last quarter, from $821 per square foot in the winter to $1,244 per square foot in the spring, according to a quarterly report from real estate company MNS.
Overall median sale prices for new development units in the neighborhood went from $1.19 million to $1.77 million.
The jump was partly due to six luxury condos being sold at around $2 million, the report said.
"These two data points confirm that the Brooklyn waterfront is still the top location for new developers to invest time and money," the report said.
Many buyers and sellers were also caught in "a staring contest" at the end of the first quarter as buyers balked at high prices and sellers refused to budge, said Jonathan Tager, managing director of Brooklyn real estate at MNS.
By the spring, buyers were willing to pony up top dollar for spaces that are mostly no larger than 2,000 square feet, Tager said.
"Buyers were like, 'This can't be what things are going for'," Tager said. "Sellers said, 'Well, yeah, look at those numbers. These are what our properties are worth'."
Many of the new developments going up in Williamsburg are rentals, leaving those looking to own in the neighborhood with fewer options, also driving up prices, he added.
"Until the inventory problem is figured out, there's always going to be demand," Tager said. "If no one has any water in the desert, whoever does can raise prices."
Williamsburg's new development sale prices shot up more than any other popular Brooklyn neighborhood this quarter, according to the report, which focuses on neighborhoods from Bay Ridge to Greenpoint.
Only new properties in Brooklyn Heights have a higher median price per square foot, at $1,262, compared to Williamsburg's $1,244.
Meanwhile, the cost of rent in Williamsburg has remained relatively steady.
In June, the average monthly rent of a one bedroom inched up less than one percent, to $3,169, according to MNS.
Deeper Brooklyn neighborhoods like Crown Heights and Prospect-Lefferts Gardens actually saw higher increases in monthly rents.
The new development report added that Williamsburg has 48 buildings in development and should see high growth in the next couple years.
More units doesn't necessarily mean a slowdown in high costs though, Tager warned.
"I look at it this way: Williamsburg is the hottest neighborhood in the hottest borough in New York, which is the hottest city to be in," he said. "It's the triple whammy. It's only going to get higher."