Price Appreciation in Brooklyn Neighborhoods?

Question

Hi all,

I am currently looking into purchasing a 1BR condo for my first home. As someone who is still getting familiarized with the Brooklyn market, I'd love for any thoughts on good neighborhoods in Brooklyn for future price appreciation?

To be more specific, I've looked at properties in the Park Slope / Prospect Heights areas and really liked them. I've also looked at places in PLG/Prospect Park South, where the new buildings are way nicer but the area itself seems less developed.

I'm curious if you all think one neighborhood would yield a better investment over the next ~5 years? Obviously the lower starting prices in the latter areas potentially give it a natural edge, but not sure if the PLG/Prospect Park South neighborhoods are still a whiles away from meaningful price growth. Put another way, I'd be willing to pay more for a similar unit in Park Slope if the % price appreciation would outpace that of PLG.

Thank you in advance for your thoughts!

Eric Hajdu · Answer

Hey Aaron,I enjoyed your post, I have a couple thoughts that will hopefully be helpful. I currently own two one beds, located in Carroll Gardens and Park Slope, I also own a 3 bed in South Slope that I live in.In regards to the four neighborhoods you mentioned and how they will potentially appreciate, I would say the following:PLG- I wouldn't buy a one bed unit here, as it primarily attracts families looking for relatively affordable singe family town houses, and doesn't offer much that young professionals would be attracted to.Prospect Heights- A great area full of dinning options, transportation, bars, etc. Very desirable, but largely already mostly discovered, would be hard to find a deal.Park Slope- Probably the most blue chip neighborhood in Brooklyn, incredibly stable, will most likely continue to appreciate at a modest rate. I would liken buying a unit here to investing in Microsoft or Apple stock.Prospect Park South- To me, this is the most undervalued of the areas you mentioned and has the greatest future upside potential. Pretty good transportation options, tons of cafes, etc. Being close to Prospect Park will always be valuable.Hope this helps, feel free to reach out to me privately if you would like to talk in more detail. I could give more accurate insights if I knew ballpark budget, if it's for yourself or to rent out, etc. Either way, best of luck, no matter what you buy in BK you will win over time.

Brandon Cohen · Answer

I haven’t been to 77 Clarkson but did tour 111 Montgomery back when it was still getting framed out…seemed like it was going to be a quality finish. Seems like @Eric Hajdu gave some solid advice. I would only add that another option would be to buy an older unit in a good building and renovate if that option is doable. For example, I have a client on Prospect Park West that just finished up a super high end Reno that I’ll be bringing to market where she forced appreciation as opposed to waiting out a short time period.

Aaron Liu · Answer

I also toured 77 Clarkson and 111 Montgomery. I thought 77 Clarkson had a better location but the interior quality was slightly lacking. I’m not too familiar with the Crown Heights area but I didn’t see much in the immediate vicinity other than the park. Super nice building though!

Nadia Jarrett · Answer

Eric, although PLG does attract families there are still great gems for single professionals in the area but not much condo inventory (uness they are retrofits) because of the areas landmark status. Prospect Park South, Kensington in particular, does have some great restaurants and bars although the transportation points can be far apart. Keep that in mind if you are thinking long term. I hope this helps.

Jason Lee · Answer

5 years is a pretty short timeframe to be looking at how the different neighborhoods are going to perform. The data I see breaks down Brooklyn into quadrants but not specific neighborhoods... I don't know that there's enough volume to do it by hood. My guess is the 5 year difference will be pretty nominal. If you look at 10-15 yrs then there might be a more noticeable spread.I wouldn't necessarily rule out PLG. Being close to the park is a big plus for many. I toured 77 Clarkson on Sunday and liked it quite a bit. They're not marketing to families... neither is 111 Montgomery. I personally like the northwest corner of Crown Heights between Washington and Franklin. Lots of great restaurants and night life. Not much condo inventory. My listings there tend to bring in a lot more artists, designers and architects. I do a lot of deals on 4th ave in Gowanus. There's good transportation and close to lots of amenities on 5th. All that industrial space isn't highest and best use and so long term I could see more zoning changes and possible growth.In the end though, this going to be your primary residence and so I would pull the trigger in a neighborhood and building where you really want to live.

Aaron Liu · Answer

Hey Eric,Thanks so much for the detailed response. I’ll shoot you a PM in a minute! One follow up question to the above that I’d pose here as it may be helpful to others as well: Would your sentiment re: not buying a 1BR in PLG also apply to Prospect Park South? Or do you think there’s enough cafes/restaurants in the area to make it more appealing to young professionals?