Monday, April 17, 2006

Gold Coast Residential

From the Jersey Journal:

Residential projects dominate landscape

Jersey City's office market boom has hit a wall, making way for a surging housing market that will change the face of the city's Downtown for decades to come, city officials and experts say.

While the 1980s and 1990s saw financial companies such as Goldman Sachs, Merrill Lynch and JP Morgan Chase transform Jersey City's shores into the Gold Coast, today's market is dominated by housing giants like Toll Brothers, K. Hovnanian and Donald Trump.

More than 15,000 residential units are expected to flood the Downtown area over the next several years, putting pressure on municipal services, according to the city's Division of Planning. Though more than seven million square feet of office space was developed from 2000 to 2005, planning officials say the current office market is very sluggish and will remain so for the foreseeable future.

"There are currently no office projects under construction, and none planned," says a planning report authored by Planning Director Robert Cotter earlier this year. Those two opposite trends have prompted at least one expert to declare that "the job growth era is over in Jersey City."
From 1992 to 2000, the state created 243,000 high-paying office jobs, driven by Jersey City's growth on the waterfront, says James Hughes, dean of Rutgers University's Edward J. Bloustein School of Planning and Public Policy.


But since 2000, there has been a net loss across the state, thanks to increases in the state income tax and other business taxes, said Hughes. "New Jersey has become an unfriendly place to do business," Hughes said.

The most recent sign of this trend is 77 Hudson St., where Hartz Mountain Industries just scrapped plans to build a 32-story office tower because the company believed that Jersey City cannot absorb the new space.

The company sold the land for $65 million to K. Hovnanian, which now plans to build two 48-story towers, with more than 1,300 condo and rental units combined.

19 Comments:

Blogger pesche22 said...

who in the world would want to live
in downtown jersey city.

its like a foreign country.

4/17/2006 09:15:00 AM  
Anonymous Anonymous said...

I've lived there for 5+ years and it's been great, neighborhoods are undergoing pretty substantial changes including many more bars/restaurants.

Paulus Hook (near the waterfront) is very nice, renovated brownstones akin to Brooklyn Heights - none of which you can touch for less than $1-$2 million. The construction boom there is amazing.. if a bit scary. But very easy commuting to NYC and still much cheaper than across the river.


Steve

4/17/2006 10:35:00 AM  
Anonymous UnRealtor said...

"More than 15,000 residential units are expected to flood the Downtown area over the next several years..."


Good luck to those who bought into Jersey City, especially with a $0 down ARM.

Should be fun selling "used" condo with 15,000 new ones hitting the market.

4/17/2006 10:45:00 AM  
Anonymous Anonymous said...

Yep- and I think the pre-construction speculators are going to take a hit there, to be sure...

Steve

4/17/2006 10:47:00 AM  
Anonymous Anonymous said...

Jersey City as a "nice place to live" is an illusion. Try taking a walk 3-4 blocks West after dark.

Local convenience store owners are gunned down nearly every month.

The school system is dreadful.

The local punks run rampant after dark.

I would never raise a kid anywhere near that place.

The big new corporate buildings have brought in lots of commuters, and some restaurants will pop up to support the traffic they generate, but many are closed after dark. These businesses are not there to support residents, but the commuters.

4/17/2006 10:52:00 AM  
Blogger DL said...

I've lived in downtown JC for the past six years, I am constatntly amazed at the never ending construction.

I can't imagine what these builders are thinking. All of this supply coming on the market at the same time has to affect prices.

The neighborhood is in general a nice place to live, but the problem of petty crime is an issue. You can't live here if you have kids, unless you can afford private school. The rest of the city is still pretty bad.

All in all I like it a lot, but it's not for everyone.

4/17/2006 02:21:00 PM  
Blogger DL said...

One other comment, these neighborhoods already have a lot of inventory on the market. Many of which where bought by speculators and are being flipped. The pricing pressure is going to increase dramatically as these new buildings come online. The downtown area is covered by for sale signs and open houses.

4/17/2006 02:26:00 PM  
Anonymous Anonymous said...

Looks like lots of "million dollar homes" are hitting the auction block

http://www.realtytrac.com/pub/articles/aol/modified/mMD_home_foreclosure.asp?a=b

4/17/2006 03:13:00 PM  
Anonymous Anonymous said...

Very nice! I found a place where you can
make some nice extra cash secret shopping. Just go to the site below
and put in your zip to see what's available in your area.
I made over $900 last month having fun!
make extra money

4/23/2006 03:42:00 PM  
Anonymous Anonymous said...

Cyber-wandering and looking for something that might help my own real estate business. Stumbled across your blog and enjoyed the visit. Thanks for the read. Visit my site if you have a chance.

4/25/2006 04:48:00 AM  
Blogger Alicia Bennett said...

Hi there, I was surfing the internet and I found your blog. I enjoy the style of how this all works.

I'll be coming back again.

Regards,

condo for rent

4/27/2006 06:45:00 AM  
Anonymous contractor said...

How do I get information for contractor... Some people believe that to create is great but build is like changing the past forever... If you want to create a beautiful home Visit contractor and you can see what a little change can create..

5/10/2006 09:52:00 PM  
Anonymous contractor said...

What in the world is the world...Some people believe that to create is great but build is like changing the past forever... If you want to create a beautiful home Visit contractor and you can see what a little change can create..

5/10/2006 09:57:00 PM  
Anonymous Anonymous said...

I have been following a site now for almost 2 years and I have found it to be both reliable and profitable. They post daily and their stock trades have been beating
the indexes easily.

Take a look at Wallstreetwinnersonline.com

RickJ

5/18/2006 05:17:00 PM  
Anonymous Anonymous said...

Pop goes the Housing Bubble? A Florida subdivision -- -- characterizes the area, the problem, and the answer. Read more ....

6/03/2006 09:44:00 AM  
Anonymous Anonymous said...

Blogging does not always widen my mental spectrum, which I need to do as a break from my own real estate work. We need more colorful blogs. Thanks for the read. Visit my site if you have a chance.

6/15/2006 02:15:00 PM  
Anonymous Anonymous said...

building books for your home library collection. Great books on building books

6/17/2006 10:34:00 PM  
Anonymous Anonymous said...

. Never Stay In Your House With House Hunters: Let the agent handle it, and remove yourself if possible. Remember that the Realtor´┐Ż has worked many hours with these people, and knows what they're looking for, and how to work with them. Let the Realtor´┐Ż do the job without interference.You may feel that an agent isn't showing the important features of your home to the prospect, but the agent knows people aren't sold by details until they've become emotionally involved with the "big picture" of your home. The presence of any member of the seller's family can't help. It always unnerves possible buyers. It often prevents a sale.
Go here for more ideas.

6/23/2006 06:30:00 PM  
Anonymous Anonymous said...

You can do a lot to For example, curb appeal sells: do some landscaping. Plant some flowers. Remember that the front door greets buyers. Make sure it offers potential a bright, warm welcome.

6/24/2006 07:55:00 PM  

Post a Comment

<< Home