Bubble Wrap: July 2009

Peninsula at Bayonne Harbor: Jersey Gold Coast's final development frontier

The New York Daily News reports on the transformation underway at the Military Ocean Terminal in Bayonne as the first building has been completed in what will be a community of 7,000 residential units and 58 acres of parkland.

“This is the most valuable piece of real estate on the entire East Coast,” says Mayor Mark Smith, a second-generation Bayonne police officer who spent 26 years on the force. “We’re a 5-minute ferry ride from the capital of the world. The peninsula has all the potential imaginable for residents, entertainment and job creation. This project is important for the entire region.”

Market Reports: Spring Kinder to the Hamptons than Winter

Curbed Hamptons wraps up the Miller Samuel/Elliman market report on the Hamptons, which brings no big surprises. The report reveals mostly everything in a state of decline except the number of transactions, which is up from Winter.

Elliman cites ‘historic low mortgage rates and seasonal trends’ to explain the slight upturn in sales, while blaming declines expanded inventory, long marketing times and sellers who list homes at prices higher than ‘current conditions support’. (PriceUppers, that’s you.) When broken down by location, North of the Highway median sales price declined just 18.1% to $712,500 from the same time last year, but South of the Highway homes saw a 41.9% drop to $900,000. Noting the under-used dividing line, the Shinnecock Canal, it seems prices to the east fell 13.1% to $999,750, while west saw a steeper 20.3% drop from 2008 to $490,000.

Ding Dong the Doorman's Dead!

The NY Post looks at the recent rise in virtual doormen systems many developers are installing in their buildings. While these systems may bring cost savings and convenience to smaller buildings, some residents would prefer a human who can help in emergency situations.

Jeff Bennett, the developer behind several new Harlem condo buildings, including Windows123 and Soho North, said he chose Virtual Doorman because it was a selling point for buyers.

“In this building, Soho North, a real doorman would be cost prohibitive, because there’s only 11 units,” he said. “It’s a great value for the money.”

Breaking the Hamptons' clubhouse mindset

The July issue of The Real Deal looks at the practices of the tight-knight group of brokers that control real estate in the Hamptons, which are seen as unethical by many.

During the real estate boom, as properties changed hands for eye-popping prices, many homeowners were blissfully unaware of unsavory behavior. But now that the market has come to a screeching halt, the region’s notorious lack of transparency is worsening the downturn, locals say.

The fact that the downturn hit Wall Street — the Hamptons’ lifeblood — so hard may, ironically, help change things for the better on the East End.

Sharp Price Drops in Manhattan Apartments

The Times reports on the recent release of the Q2 Manhattan market reports, which show big declines in price and volume from a year ago, while activity has picked up in the last 6 weeks.

The number of closings fell more than 50 percent, and prices in some categories were reported down as much as 25 percent, compared with the same quarter in 2008. Sale prices were also down from those reported in the first quarter of 2009.