Closer than ever before! Our Junior Expansion Manager, Annika Osche, is going to New York City on a tour of discovery. She will be reporting her experiences in the Big Apple and with the US property market. Here, she shares her experiences with us and talks more about the highlights of her time abroad. Today, Annika tells us all about Long Island City…
I’m not the only one to have become a fan of Long Island City (LIC) during my time in New York City! Many other people seem to feel the same way. The property market has been booming there for some time and of course, I want to spill the beans on the exciting reasons for this boom.
Today I’ll give a brief insight into the western part of Queens, which also includes Astoria and Hunters Point. This is where residential and commercial areas meet, making Long Island City – which has become renowned for its successful gentrification process in recent years – into an attractive part of the city.
Among the advantages of Long Island City are its good transport links with Manhattan and JFK airport, its view of the Manhattan skyline, its modern art scene, good schools, the new construction of the Cornell NYC Tech university campus on Roosevelt Island, a low crime rate, lots of restaurants, and a growing property market.
Parks on the bank of the East River, a flourishing arts scene and a high concentration of art galleries, as well as countless converted factories and commercial buildings, attract many visitors. Worth a mention are the MoMA PS1, an offshoot of the Museum of Modern Art, and the Silver Cup Studios, the biggest film and television production site in New York, where the TV series ‘Sex and the City’ (among others) was produced.
Behind the famous Pepsi Cola sign are newly built apartment complexes, most of which are equipped with swimming pools, roof terraces, fitness and yoga studios, barbecue areas, dog walking enclosures, restaurants and a 24-hour reception.
As reported in an article in the New York Post in January of this year, the reason the new builds are equipped with so many amenities is to provide residents with a wide range of leisure activities to choose from within the apartment complex. Back when the complexes were being built in 2005/2006 there were no restaurants in the neighbourhood, and no facilities for leisure activities. Today, this level of comfort represents a competitive advantage and offers luxury to tenants. On the subject of tenants: What’s unusual is that the amenities here are not particularly available to property owners, given that 90% of the new buildings consist of rental units.
Rising rents in Long Island City are making the neighbourhood increasingly attractive to investors. Rents in Long Island City, according to Trulia, are as high as on the Upper West Side and in other parts of Manhattan. The selling and purchase prices per apartment lie in the second highest category, and the median value for Hunters Point stands at $780,000 per privately-owned apartment. However, the price per square metre is at the same level as in most parts of Manhattan (a median value of $882 per square foot, which equates to roughly $9500 per square metre).
According to Trulia.com, the average price per square foot (equivalent to 0.0929m²) in Long Island City has risen by 15.9% in the past year. The median selling price rose by 19.3% and the number of sales fell by 60.2%. In the last week of July this year, the average selling price in Long Island City was $1,441,787, representing an increase of 11.3% on the previous week alone.
According to the New York Post there are now a number of new apartment complexes in Long Island City with several hundred apartments, which are usually let for between $2,400 (for a studio) and $5,700 (for three bedrooms). Demand is so high that lots more luxury rental properties are planned, and the demand for privately owned apartments is growing too.
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