We are Eileen Hsu and Morgan Evans – both Dorchester Towers residents that have been living here for the last ten years. We are also full – time Licensed Real Estate Salespersons with Douglas Elliman Real Estate and have sold and rented over 70 units in Dorchester.
We figured it would be useful to go back in time to 10 years ago and see what prices were in 2009 and compare them to today in order to see where the biggest changes are and what insights and advantages we can gain. This data has been supplemented by Douglas Elliman’s LIMO listing system, property shark, StreetEasy, ACRIS and our own sales record in Dorchester.
Luckily, we keep detailed track of the sales market for the Dorchester which enables us to look back to 2009 and see what was selling and what those apartments were all about.
Two major takeaways about Real Estate prices in 2009:
- We were in a severe buyers market, the national economy was still deep into the financial crisis and real estate prices were suffering.
- The Dorchester had its old and tired looking hallways and lobby – those renovations 100% helped resale value for everybody.
So let’s take a look at 2009:
We tracked 11 different sales in 2009, which is a lot of sales for the building. Comparing it to this year, we have Three Condos In-Contract and a few off market sales, so we are still waiting to see where prices are coming in at.
Dorchester Studios:
There were two studios that closed in 2009, a small studio that sold for $470,000 and a very nicely renovated alcove studio for $620,000 – quite a large range, the average price per square foot was $1,009, and the average price was $545,000.
Compared to 2019, no studios are on the market and last year we saw just one of the jumbo studios sell for $837,000.
Insights: If we were to guestimate, the alcove studio that sold for $620,000 would probably sell for about $750,000+ now, its very nicely renovated and we find that great renovations are always the most in demand apartment. The studio that sold for $470,000 would probably sell for about $650,000.
Dorchester One Bedrooms:
In 2009 there were four one bed sales, the price range was $585,000 – $730,000 with an average price per square foot of $1,071. In 2019, we have a one bedroom in contract with a last asking price of $899,000 and two other one beds on the market, asking respectively $865,000 and $995,000.
Let’s take a look at the individual one bedroom sales back in 2009.
The apartment that sold for $585,000 was apt. 309. That is an Amsterdam Avenue facing, third floor apartment, in an original condition (circa 1965). They asked $629,000 and sold for $585,000 in about one month. Compared to 2019, there is a second floor apartment on the Broadway side that needs a gut renovation asking $865,000. That particular apartment has been on the market for quite some time (nine months+), it is a bit of an outlier due to some additional circumstances, but we would have to assume people are making offers significantly below the asking price.
In 2009, we listed a 33-line apartment that sold for $650,000. In 2018, a 33 line on the third floor sold for $960,000.
Apt. 915 sold for $715,000 in 2009, in 2018 there was a 15 line on the 16th floor that sold for $910,000.
Insights: Looking at 2009 vs 2018/2019 we see some pretty sizeable jumps in values, somewhere between $200,000-$300,000 depending on the layout. The one bedroom condo market has a deep pool of buyers who are always looking, we feel this will always perform well from an appreciation perspective.
Dorchester Convertible Two Bed/Junior fours:
Two units sold in 2009, one for $825,000 and the other for $835,000. Both of those layouts easily converted to have second Bedrooms and both had one and a half bathrooms which is always a fairly significant price difference. We would estimate those to sell for around $1.3 million, so about a 50% increase in price! Both of those apartments were very good buys at the time, the Junior 4 bedroom category over the next few years jumped up to $1,000,000 and has increased from there.
In 2019, we’ve seen some Convertible Two Bedroom units, the layouts with just one bathroom sell in the $1.1-$1.2 million range, so pricing varies a lot with this type of layout.
An Original Two bedroom unit in the tower portion (22nd Floor to 35th Floor) sold for about $1,050,000 in 2009. That apartment was small for a Two Bed – about 925 sq ft, but the fact that it was a real Two Bedroom with 1.5 bathrooms made it desirable.
In 2019, a combination apartment (One Bedroom and Studio apartment) were combined into a Two Bedroom unit and put on the market for $2.2 million this year. It went into contract relatively quickly, it was very nicely renovated, we would anticipate that it sold close to its asking price.
Two Bedrooms do not come up on the market that often in the building so pricing is always very situational, but even a small two bed apartment in the neighborhood in 2019 starts at $1,500,000 and goes up from there, so you could use that as a baseline for pricing.
Dorchester Three bedrooms:
A large Three Bedroom unit sold in 2009, was over 1,800 sq ft and sold for $2.2 million. That same apartment sold in 2014 for $3.4 million, which is over a 50% increase in price. Also, 2014 in retrospect had extremely little inventory so the price was higher because the market was reaching its peak as well.
2009 was a great year because there is every size apartment on the market that year, which is pretty much unheard of. There was also a four bed apartment that came on the market. It was a combination unit on the 2nd Floor that sold for $1,610,000. After undergoing a complete gut renovation, that apartment sold a few years later for $2.5 million.
A four bedroom is a real outlier in the building, you do not see them too often. This requires at a minimum two Junior four units (Convertible Two Bedrooms) to be converted. We sold a four bedroom late last year (2018) for $2.9 million, it was a conversion of two Junior fours, also on a low floor(3rd floor). It had a very nice layout and well thought out renovation.
Pricing out a four bedroom in the building will include many variables, a lot will depend on how well the apartments were combined, meaning does it feel like a natural layout or is a bit quirky? The most well designed combination units often planned by professional architects and interior designers.
What are our biggest takeaways from 2009 to 2019?
Everybody is making money, that is always a good thing. Having equity in your apartment even if you do not have immediate plans to sell is always good to know that when it is time to sell, you will be able to without a problem.
Which type of apartment appreciated the most?
Studios – about 30%
One Beds – 35%
Convertible Two Bedrooms – 50%
Two Bedrooms – 50%
Three Bedroom and Four Bedrooms – Very hard to say, not enough data
These are approximate numbers above, including some educated pricing if those apartments hit the market again this year.
Overall thoughts about Dorchester – The basic building fundamentals are strong. Our location in the neighborhood will always be desirable, a doorman condo with a variety of amenities will always reach the demands of a lot of buyers. The apartments that saw the largest returns were definitely the renovated ones. Renovations are the key variable, influencing how much the apartment will sell for.
We hope you find this 10 years market report helpful, if so, we would love hear some positive feedback from you, drop us an email anytime.
