The average price for a two-bedroom condo in Brooklyn has effectively doubled over the past decade – rising from $722K ($648 PSF) in 2012 to $1.25M ($1,141 PSF) in Q3 this year. And it’s not only prices that are rising. The sheer volume of deals above $4M has been increasing over the past 5 years, with 2022 seeing record highs — and record prices.
Olympia Dumbo recently listed its $17.5M PHA at $4,097 per square foot. If sold at the asking price, developer Fortis Property Group would best Front & York’s recently set PPSF record by nearly 50%. These are big, Manhattan-caliber numbers.
Premium projects like these reflect the new ultra-luxury frontier in Brooklyn. Here’s a look at the exclusive developments where $4M gets you in the door (but not even close to penthouse level).
Home of Brooklyn’s Most Expensive Condo
Quay Tower, located at Pier 6 in Brooklyn Heights, sold a penthouse in 2020 for $20.3M, setting a new boro condo record. The building has also seen several sales between $6M and $10M. PH2A is currently listed for $10M, asking $4,158 PSF, which is even higher than the Olympia Dumbo PH, and has the potential to set yet another record. Four other penthouse units are in shadow, with prices ranging from $7.25M to $10.25M. Serhant is handling sales with Jim Hayes and Brad Mohr. See it here >>
One Clinton in Brooklyn Heights signed a $9M 5-bed last week, earning a spot in Marketproof’s newsletter as a top 3 deal city-wide. The development has a high concentration of units priced above $4M, most of them three bedrooms. With only 10% of inventory remaining, the luxury condo has found buyers for nearly every premium unit, except for one: a $9.5M 4-bed currently in shadow. Top sales have included 2 5-beds priced around $9M and several 4-beds above $6M. Corcoran Group is handling sales with Leslie Marshall, James Cornell, and Nick Hovsepian. See it here >>
Angling for New Records
This brings us back to Olympia Dumbo, where 2-beds start just under $3M (twice the boro average) and the average unit is asking $2,204 PSF. Oh, and PHA isn’t even the most expensive unit. PHB is currently in shadow but could list for closer to $20M. Sales launched last October, and the project is over 30% sold with top teams at Douglas Elliman Development Marketing and Sotheby’s.
See it here >>
Although not quite in the ultra-luxury tier, Front & York deserves a mention for that impressive PH sale over the summer. PHB in the project’s York Tower closed for $8.8M at a record-setting $2,882 PSF. Developers CIM and LIVWRK also sold PHA for $7.25M, achieving $2,240 PSF. However, these are select premium units in a development where the bulk of inventory across the two towers is asking around $900K to $3.5M. See it here >>
So what happens now?
All eyes are on The Brooklyn Tower, which has, up until this point, only listed and priced its least expensive inventory. Yet this small selection is asking $2,297 PSF on average, and JDS Development is likely only going up from there. See it here >>