Buyers Flock To Jersey City As Interest Rates Jump
Jersey City’s residential for-sale market is as strong as ever, and JCity Realty recently began to achieve nearly $1,200/SF at The Oakman Condominiums, The Shuster Group’s 159-unit luxury project on First Street in the Powerhouse Arts District.
“We’re expecting to keep increasing prices as we move forward,” said JCity Realty principal broker Natalie Miniard, who, with her business partner, launched the firm to assist developers capitalizing on the underserved condo market and flood of rental communities opening.
The big draw of The Oakman is that it’s one of the few large-scale, mid-rise developments to be built since the last condo boom of 2006 to 2007, she said.
“Almost everything else is rental, and we have a 20-year tax abatement at less than 1% for nearly the first 10 years," Miniard said. "That’s a decade longer than almost anything else out there and at a considerable lower rate.”
Residents began moving in this past July, and 25% of the building remains available.
The remaining units are mostly the larger, higher-end units, including The Villa, above, which Miniard will be presenting to the market in April. The 3,500 SF, top-floor home will include an additional 2,500 SF of bilevel outdoor space and a private pool; she expects that it will be the most expensive condo to ever sell in New Jersey.
Holding these units was a strategic move for JCity, which wanted prospective buyers to experience the energy present after the other residents moved in, helping achieving the highest return for the developer.
JCity will also assist The Shuster Group in its yet-to-be-named, 66-unit condo project near Hamilton Park, which is set to break ground soon. The building will include larger two- to three-bedroom homes with plenty of amenities for families.
“Given there’s so few new condo buildings, there is a lot of demand,” Miniard said. “Most of the new construction Downtown is rentals, and they’re filling up with people who will eventually want to buy. These residents want the opportunity to make an investment in the neighborhood they’ve grown to love.”
In November, Smart Asset dubbed Jersey City the most livable city in the U.S., citing its population density, high income after housing, walkability, proximity to New York City and lower living costs. Based on its study, Jersey City residents have an average of more than $35k to play with after housing costs.
Earlier this month, Curbed named Jersey City "neighborhood of the year" as winner of its annual Curbed Cup — the first outside of NYC to grab the honor in four years.
“The city has done a wonderful job with publicity, and people are moving her from other areas,” Miniard added. “And with interest rates going up, people are looking to buy now. 2017 will be strong for Jersey City.”
Miniard will be speaking at Bisnow's New Jersey State of the Market event on Feb. 14.