Even while the bottom has fallen out of the entire U.S. housing market, Koreans in New York are increasingly interested in the redevelopment of Long Island City (LIC), in Queens. The redevelopment of this area of Queens, once an industrial zone packed with factories, has taken off and construction is in full swing. Since 2004, when the Bloomberg administration announced the designation of new residential areas in LIC and Astoria, the areas have seen an increase in development. The projected goal of this massive redevelopment is 165,000 middle-income family housing units in a decade, with total investments projected to reach $7.5 billion. Currently, 20 percent of the project is completed, and developers are planning to finish by 2014.
Real estate experts say that Korean Americans are expressing a strong interest in these areas for their proximity to Manhattan. According to local real estate brokers, 30 percent of inquiries are for these areas in West Queens. Korean companies are actively trying to participate in the housing project. A planned 12-story building with 150 apartment units, which will house 200 New York University graduate students, is going up at 46th Rd. and 5th Street, in addition to a number of public parks, all of which have caught the interest of investors.
"Over 30 percent of all calls regarding the purchase of homes center on this new development area. But we are also getting a lot of interest in commercial space for small businesses as well," said Mr. Chong, the president of R & E Realty.
Prices for property in the area are not low. Luxury unites are going for $300,000 to $400,000 for a one-bedroom apartment; a one-bedroom condo is priced at around $300,000. Experts say current prices are almost 10 percent lower than last year, but these prices are not following the nationwide drop, which experts believe will begin to climb again soon. Since this area is so close to Manhattan, it is expected to attract many young professionals, interested in buying houses or renting business space. New investors believe this is the next hot area in the city. Mr. Young-ki Kim, a housing market agent, said, "The proximity to Manhattan will speed housing and rental contracts."
According to N.Y. State housing statistics, 3,460 family apartments were completed in the area between 2002 and 2008. Many Korean construction companies were involved in the construction of these units. In the last five years, 50 buildings were completed or are in the mid-phase of construction. Korean construction companies have largely been involved in 30 five-story buildings, and over 10 projects of 300-family housing units. Mr. Bum-jong Nho, president of NHO Development Company, who is putting up a 25-story, 180-unit building, said, "Most of my apartments have already been sold. Sixty percent of the tenants are Asian."
