October 4, 2009
Finding a bottom in Brooklyn
A neighborhood breakdown of prime Kings County -- aka Brooklyn -- shows where prices have dropped most
The Real Deal
By Sarah Ryley
Though Lyin' Bruce Ratner tells everyone that Atlantic Yards is in Downtown Brooklyn, after reading this article about the state of residential development in Kings County, he'll be glad it isn't.
The neighborhoods of Downtown Brooklyn, Clinton Hill and Fort Greene were among the most rapidly gentrified during the real estate boom. Now, the district has also experienced the most rapid fall in median sales price, 29 percent over the past two years.
"Downtown Brooklyn has done worse than just about any other neighborhood, even worse than Williamsburg, for two reasons," said Miller Cicero's Falsetta. "The bulk of the developers in Downtown Brooklyn have been generally unwilling to cut pricing.
"And the other reason is, Downtown Brooklyn never really finished gelling as a neighborhood."
According to the article, it will take years for the market to shake out.
Robert Knakal, chairman of Massey Knakal Realty Services, which is marketing several distressed assets in Brooklyn, predicted prices will bottom sometime next year, at the same time unemployment peaks, and then flatten for two or three years after that.
Ultimately, he said the firm expects prices to drop an additional 5 to 10 percent.
NoLandGrab: Meanwhile, as the demand for luxury housing has evaporated, all of the assumptions that Ratner used when Atlantic Yards was first announced in 2003 are moot.
Posted by lumi at October 4, 2009 5:42 PM