The luxury markets in New York’s outer boroughs and surrounding suburbs are rallying as high-end buyers look for alternatives to ever-pricey Manhattan.
Luxury properties in Brooklyn, Queens and Westchester, which are defined as the 10% of sales in each market, saw significant gains in both sales and prices, according to a report Thursday by brokerage Douglas Elliman.
One of the reasons, according to Steven James, chief executive of Douglas Elliman New York City, is that buyers priced out of Manhattan are moving to Brooklyn, and as a result, those forced out of Brooklyn are moving to Queens. "It’s like falling dominoes," he said.
Brooklyn in particular, has been attracting buyers who would otherwise shop in Manhattan, said Jonathan Miller, chief executive of real estate appraisal firm Miller Samuel and author of the Douglas Elliman report.
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"Unlike Manhattan, which has seen softening in the top of the market, luxury new developments and townhouses in Brooklyn have been unusually strong," Mr. Miller said.
From April to June, about 277 properties in Brooklyn were sold for $1.9 million (the entrance threshold for the luxury segment) and above, increasing 46.6% from a year ago, according to the report. The median sales price, at $2.52 million, was 32.6% higher than the same period last year.
In terms of neighborhoods, Brooklyn Heights, Williamsburg, Park Slope and Bedford–Stuyvesant have seen the largest uptick in luxury sales.
The rippling market effect has also spread to Queens. In the second quarter, the median sales price of the borough’s 433 luxury homes reached $1.2 million, representing a 9.1% increase year-over-year. The average sales price of luxury homes was $1.35 million, the highest price on record, according to Mr. Miller.
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The strongest-performing neighborhoods in Queens is concentrated in northwest Queens, including Long Island City, Sunnyside, Woodside and Astoria.
Westchester County, another alternative for Manhattan buyers, especially for those looking for luxury single-family homes, saw moderate price and sales growth rate in the second quarter. For the top 10% single-family market, 163 homes changed hands, with a median price of $2.2 million. The number of transactions increased 8.7%, while median price rose 6.7%.
Douglas Elliman published the second quarter report on Manhattan sales earlier this month. Manhattan’s luxury median sales price reached $6.8 million by the end of June.
| COMPARE NEW YORK LUXURY SALES MARKETS | ||||
| MANHATTAN | BROOKLYN | QUEENS | WESTCHESTER | |
| MEDIAN SALES PRICE | $6,837,000 | $2,521,000 | $1,200,000 | $2,200,000 |
| Y-O-Y CHANGE | 3.50% | 32.6% | 9.1% | 6.7% |
| NO. OF SALES | 316 | 277 | 433 | 163 |
| Y-O-Y CHANGE | 15.3% | 46.6% | 61.0% | 8.7% |
| ENTRANCE THRESHOLD | $4,875,000 | $1,925,000 | $997,000 | $1,730,000 |
| DAYS ON MARKET | 231 | 101 | N/A | 136 |
| LISTING DISCOUNT | 10.4% | 4.1% | N/A | 3.8% |
| SOURCE: DOUGLAS ELLIMAN | ||||