New Projects Set to Start For 2010 in Hoboken and Downtown Jersey City New Construction Sales to Rise 50%

Here's an interesting excerpt from a recent New York Post article on new development slated to begin in 2010 in the Hoboken and downtown Jersey City areas.

I find that it's a positive sign when developers are now ready to jump back into the market.

There has been a lot of talk of the market declining slightly towards the end of this year, with prices rebounding for the 1st half of 2010. As someone in the trenches in Hoboken, I haven't seen this to be the case.

Also looking to the future is Hoboken’s Fields Development Group, which, says principal James Caulfield, plans to start next year on three new projects: a 30-plus-unit building in Hoboken and 130-unit and 22-unit buildings in Jersey City.

“Interest rates are low and construction costs are stable,” Caulfield says, explaining his plans to build through the downturn. And with fewer developers now active, he expects there to be less inventory to compete with when his projects come to market in two to three years.

As for selling in the here and now, Caulfield is trying a unique approach with his firm’s new 76-unit Jersey City condo building, the Saffron: He’s taking it straight to auction.

In August, Fields auctioned off all eight units in its Hoboken development 1300 Park. The event drew several hundred people, and after starting with suggested opening bids of $150,000, the apartments (originally priced from $419,000 to $619,000) sold at prices ranging from $401,000 to $449,000. Impressed by the results, Caulfield decided to apply the approach with the Saffron. Sales there kick off with a Nov. 8 auction at which nine units will be up for grabs, with suggested opening bids starting at $175,000.

Also launching sales this fall is phase two of Jersey City development the Beacon, where 25 full- and half-floor lofts are coming to market at prices starting under $300 a square foot.

For those looking to buy, it could make sense to take the plunge soon, says Otteau Group president Jeffery Otteau. Inventory levels suggest that prices in Hoboken and Jersey City might still decline somewhat, he notes, but he anticipates the market will strengthen moving into 2010.

“Our expectation is that new-construction sales in the first half of 2010 will be up 50 percent from this year,” he says. “We’ll be in a much stronger place.”