AgentMarkets & Economy

Buyers willing to pay premium for Brooklyn luxury

With Manhattan’s oversupply of luxury apartments, demand for high-end in Brooklyn is increasing
  • With an average sales price of $795,409 (up 6.2 percent from last year) Brooklyn isn’t so cheap anymore.
  • Total pending sales in Brooklyn's luxury price tier went from a 20.1 percent share of the market to 22.3 percent year-over-year.
  • In Q1, Brooklyn had 192 total sales in the luxury market, compared to 154 in the first quarter last year.

Future-Proof: Navigate Threats, Seize Opportunities at ICNY 2018 | Jan 22-26 at the Marriott Marquis, Times Square, New York

Brooklyn and luxury didn't quite go together 10 years ago. An eclectic mix of less expensive apartments -- many loft-style -- and a trendier, laid back scene attracted some Manhattanites to make the switch before the borough became the trendy hotspot it is today. With an average sales price of $795,409 (up 6.2 percent from last year, according to Douglas Elliman’s Q1 report) Brooklyn isn’t so cheap anymore. As more money floods the borough, the luxury market is making its way as an alternative to what might not be offered as much in Manhattan: high-end apartments under $5 million. Growing pending sales for luxury homes StreetEasy reports show Brooklyn luxury homes are lingering on the market, similar to the trend seen in Manhattan. Homes that went into contract in the first quarter of this year spent an average of 73 days before closing, which is 24 days longer than in 2015. Brooklyn’s luxury homes increased in price by 3.9 percent, but failed to pace with the ove...