New developments all the rage for buyers this autumn
When it comes to buying real estate this fall, competition over new developments is fierce, experts said.
Stephen Kliegerman, president of Halstead Property Development Marketing, said there has been little recent constructionsince the economic downturn in 2008, keeping the market limited.
"Basically, what's big is almost anything new, because there's so little new construction product out there," he said.
Kliegerman said the market's been "incredible" over the last 12 months, adding that he hasn't seen interest levels as low as their current rate of approximately 3% in his 20 years working in New York City.
Pre-war conversions in particular are gaining popularity, he said, such as 737 Park Ave. and 150 East 72nd St., which developer Harry Macklowe is converting into new condos.
Kliegerman added that fewer residents are moving out of their apartments, increasing the demand for new buildings.
"Because the rental market has appreciated so much in the last 12 to 24 months ... more people are turning to the new developments, because they don't have an option to go to a building that's slightly older," he said.
According to a report compiled by StreetEasy last week, the median listing price in Manhattan increased just .1% in the last six months, but went up 11.1% in the last year.
Overall real estate inventory in the borough declined 17.7% in the last six months, the report states. New York studios are the most popular real estate searched for on Google, with one-bedrooms following closely behind, according to data provided by the search giant. Searches for city digs in general on Google are up 80% from 12 months ago.
In addition to Manhattan neighborhoods such as Hell's Kitchen, areas in Brooklyn including Park Slope, Brooklyn Heights, Williamsburg and Bushwick also continue to gain popularity, Kilgerman noted.
Norma-Jean Callahan, a sales manager at Corcoran, said new developments that offer residents a full-scale amenities package, or "a lifestyle in their building," are particulary popular this fall.
Callahan manages sales at 515 East 72nd Street, which she said does well on the market because it offers a swimming pool, fitness centers for adults and children, and wellness classes, in addition to being a full-service building.
"If it's cold nine months of the year, having [a gym] in the building makes it a little easier to be fit," she said. "It makes it a better lifestyle in New York City to have everything accessible in the building."
As far as neighborhoods go, Callahan said that downtown is always hot, and made more so by the new developments in Chelsea from star architects, such as Jean Nouvel and Frank Gehry.
She agreed that Brooklyn is the next viable market, adding that DUMBO is increasingly popular.
"It really is the mini-Manhattan at this point," she said of the neighborhood.