Dorchester Towers Condo 2013 Year in Review Market Report
In 2013, less apartments sold at Dorchester Towers than in past few years, however prices increased significantly. A total of Five (5) apartments sold and closed in 2013, down from Eight (8) in 2012 and Fourteen (14) in 2011. Basically fewer units were coming on the market, but much higher prices were being achieved. This reflected the overall sales market for Manhattan condominiums in 2013, which would be categorized as having very limited inventory with far more demand than the supply that come on market.
In 2013, the sales market at Dorchester Towers was dominated by larger Two Bedroom units. Three out of the Five apartments to sell were Two Bedrooms, with just one alcove studio selling and just one Junior-4 (1 Bedroom with dining alcove) closing by the end of the year.
Some of the trends we saw while we actively marketed and sold at the Dorchester in 2013 were big turnouts at the first open house, multiple offers being made for well priced apartments, and a very positive reaction to the lobby renovation and addition of the fitness room.
With that being said, let’s review individual segments of the Dorchester Towers Sales Market.
Studio/Junior 1 Bedroom at Dorchester Towers:
One Studio Unit Sold in 2013. We represented the owner of the sale of this Broadway Facing Alcove Studio on the Sixth Floor. In 2012 there were zero (0) Alcove Studio’s to came on the market, so we were expecting a pent up demand when this apartment to came on the market. This apartment was also Broadway Facing, which has become an increasing valuable and the most sought after view in the building. This unit came on the market asking $689,000, and we were able to quickly secure an all cash transaction that closed for $709,000. (here is the link of details of that studio http://dorchestertowerscondo.com/dorchester-tower-broadway-facing-one-bedroom-for-sale/)
In 2011, prices for studios ranged from $490,000-$660,000, with an average price per square foot of about $1,008 sq/ft. Transitioning to 2013, the price per square foot increased about 17% to $1,176. As we have mentioned before in our annual reports, studios at Dorchester Towers have a huge variety in layouts and sizes, so there will always be a wide range in values. If the view is obstructed and on a lower floor a lower expectation of value has to be considered.
Because of the nature of the range in values for studio apartments, we pride ourselves in having an expert knowledge of every layout so we can properly maximize our owner’s ability to sell for maximum price in today’s marketplace. Because of a lack of quality studio condominium inventory, we expect prices to continue to appreciate in this segment of the market.
One Bedroom at Dorchester Towers:
In 2013, there were no one (1)Bedroom apartments to come on the market for sale. The One Bedroom market at Dorchester Tower’s is definitely one of the most sought after types of apartments. They typically have very efficient layouts meaning there is very little wasted space, they usually have great closet space, they are usually offered for sale in a price range that has a large pool of buyers. For example throughout 2013, we had an incoming stream of calls from buyers asking if any One Bedrooms were coming on the market for sale, and unfortunately we did not have the inventory to provide. So far in 2014, we had the opportunity to market unit# 927, a Broadway facing One Bedroom, asking $899,000. We were able to quickly secure an all cash buyer and are already in-contract in within a week of being on the market.
From 2010-2012, the average price per square foot for a One Bedroom was around $1,040 sq/ft and now in 2014, we have unit# 927 which had a price per square foot at $1,340 sq/ft. Because the apartment has not closed yet, we cannot disclose the contract price, but feel free to reach out to us as we have a very good pulse on the upward direction sales prices are going in the building.
Are all One Bedrooms going to sell for over $1,300 sq/ft or $1,200 sq/ft now? It depends on a number of factors: View, Apartment Renovations, Marketing Exposure, other available inventory in the Building and in the neighborhood. For your own consultation of apartment value, call us directly so we can provide you with an exact assessment of your Dorchester unit.
Junior Four (One Bedroom with Dining Alcove) at Dorchester Towers:
The Junior 4 (Convertible Two Bedroom) Market is one of the most Popular Layouts in the Building. There are over a dozen different layouts in the building for these types of apartments. With various sizes and configurations, the most desirable usually being having the extra half-bathroom and dining alcove that is easily configured to a 2nd Bedroom. Those layouts essentially work as an entry- level two bedroom apartment and have been in high demand recently. Because the inventory levels for a true Two Bedroom are low, this type of apartment has created a niche in the marketplace for those buyers who need that additional room, but are not ready yet for the true two bedroom price point. (below is a photo of unit #1204 Junior four, convertible two bedroom in Dorchester Towers condo)
There was an additional Junior-4 apartment on a higher floor with 1.5 Bathrooms that was very nicely renovated that came on the market asking over $1,600 sq/ft. It’s recently had a contract signed, so we don’t know what the contract price is until it closes, but we know is that it took about 6 months from first entering the market to going in-contract, which is a very long time in this marketplace.
At the beginning of 2014, we brought on market unit #12-04, a Junior 4 apartment on the market for sale in its original condition. We marketed aggressively and we had multiple offers within the first week of showing with a massive open house turnout over 100 visitors. The unit went into contract above the $995,000 asking price. (here is a detail link of #1204 http://dorchestertowerscondo.com/dorchester-towers-convertible-two-bedroom-1204-for-sale/)
We anticipate this segment of the market to continue to be very desirable in 2014, especially when it is priced accurately.
Two Bedroom at Dorchester Towers:
Two Bedroom Apartments were one of the most active segments of the market in 2013. Three apartments may not seem like a lot, but during the summer of 2013, these three very different Two Bedroom apartments were all on the market and all sold at very strong prices. The price range varied considerably from a small 924 sq ft Two Bedroom on the 24th Floor selling for $1,335,000, transitioning to a larger 1174 sq ft Two Bedroom on the 34th Floor selling for $1,750,000, and finally a 1,354 sq ft Two Bedroom with a large terrace on the 16th Floor selling for $2,100,000. The Two Bedroom category of the condominium market in the Lincoln Square neighborhood has very limited amounts of inventory especially in the sub-$2,000,000 price range.
So the buyer demand is ready to look at and purchase quality inventory. We had the opportunity to market and sell the Two Bedroom apartment on the 34th Floor, so we have valuable insight into exactly what those buyers are looking for and how to best position and market the apartment for maximum sale price. (Here is a link for #34B, a two bedroom we sold in 2013: http://dorchestertowerscondo.com/dorchester-towers-at-155-west-68th-street-unit-34b/)
Dorchester Towers Condo Market Report Conclusions:
So what does it all mean and what to expect in 2014? Condo prices appreciated significantly across essentially every segment of the Manhattan marketplace. The financial markets and stock market increased significantly, raised rents in 2011 and 2012, combined with lack of quality inventory and foreign investment demand pushed prices higher as any buyer who was thinking of purchasing was forced into action.
Now also combine that with the recent lobby renovation in the building and addition of the fitness room and the planned renovation of the hallways. The aesthetic of the first impression when entering the building along with a more competitive amenity package with the introduction of the fitness room validated the higher asking prices. Essentially Dorchester Towers has become more competitive with the surrounding condominium buildings in the neighborhood. (Below is a photo of newly renovated lobby hallway)
Looking forward, we expect more inventory in 2014 than in 2013, something we are already experiencing. With prices increasing, new benchmarks are being set, so sellers are becoming more confident to put the units on the market and with good reason. Decreased inventory combined with what remains strong buyer demand is a recipe for a healthy sales market in 2014. Buyers are still very savvy, even with the limited amount of inventory they still spot an overpriced apartment pretty quickly. When an apartment is priced beyond the typical range for what it is and what it offers, they will sit on the market. “Days on market” is usually a seller’s number one enemy, as the longer it remains on the market the less likely they are to achieve the highest price possible.
Most predictions indicate that prices will remain strong in 2014, with historically low amounts of inventory, creating a robust marketplace. We have seen already in 2014 that when priced and marketed effectively, the buyer demand is still alive and well.
Morgan Evans and Eileen Hsu, residents of the Dorchester Towers are the consistent Top Selling agents for the Dorchester Towers Condominium.
We have the most thorough track record of results of any sales team, we sell Dorchester for the best price and fastest compare to any other agent. We know which banks will finance in the building, which contractors to hire to get the apartment ready to be shown, when is the best time to come on the market for sale, everything you need to assure a successful transaction.
If you are an owner and are thinking of selling or renting your Dorchester Tower condo unit, we welcome to contact us for a confidential discussion of your Dorchester condo unit at (917) 837-8869. Or email us at Morgan.Evans@elliman.com or EHSU@elliman.com
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