Prices of new condos have jumped as much as 100% over the past five years in parts of Brooklyn.
According to the most recent New Development Insights report from Halstead Property Development Marketing (HPDM), the average price per square foot for closed condo deals in new developments in Boerum Hill and Park Slope has risen steadily in the past five years.
In preparing its report, HPDM examined neighborhoods where both supply and demand for new condos are high.
In Boerum Hill—where the condo pipeline remains thin—the average price per square foot was $1,305 in the year to date, up 15.2% compared with the whole of 2015 and a whopping 103% increase from five years ago. In Park Slope, meanwhile, the average price per square foot was $1,107 in the year to date, a 64.1% increase from five years ago.
"I think what’s driving it more than anything is the high level of design," HPDM president Stephen Kliegerman told Mansion Global.
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Developers are offering buildings with bigger residences and more amenities, which means higher prices for buyers. Meanwhile, demand from Brooklynites—many of whom are transitioning from renting to buying—and from Manhattan transplants continues to grow.
As a result, a number of new condo developments in Brooklyn have reported strong sales figures, including Park Slope’s 251 First Street project, which is being marketed by HPDM.
The 11-story building has 44 residences, with prices starting at $1.289 million for a two-bedroom. Sales began in May, and the project is now 50% sold.
Sales milestones like these are noteworthy at this time of year. Like Manhattan, Brooklyn typically sees a slowdown in residential sales in the summer, when many would-be buyers are on vacation.
Write to Gina Faridniya at gina.faridniya@dowjones.com