Recent sales in a beachside mobile park condominium in New York State have raised its average unit price to $2.5 million. Among the three sales that closed in 2023 in the Montauk Shores park was a record-breaking $3.75 million sale. The average closing price in the park has more than doubled since 2020. The main drivers of value for the park include the scarcity of property for sale in the area, proximity to the ocean, and the surfing conditions of nearby Ditch Plains beach.
In February of 2023, one of the trailers in the Montauk Shores park sold for $3.75 million, triggering a surge of similar listings. These include listings for $4.4 million, $3.9 million, and $3.6 million. While these listings are not all selling–there have only been three closed deals in Montauk Shores so far in 2023–the listings are likely to remain high at least until an expected spring surge in early 2024.
Of the sales that closed this year, one was the $2 million sale of the unit previously owned by the buyer of the $3.75 million unit. The $3.75 million sale was a neighbor-to-neighbor off-market sale. The buyer wished to upgrade to a better unit inside the park, which operates on a condominium system. All sales that take place inside Montauk Shores are made cash-on-hand, limiting the pool of buyers significantly.
According to the real estate agents representing the sellers and buyers at Montauk Shores, the park attracts a very specific kind of person: young CEOs with a generous supply of cash, who are interested in nearby nightlife. They also tend to be surfers attracted by Ditch Plains beach, which is reputed to be among the best locations for surfing in New York State.
Not every unit inside Montauk Springs has such a high price tag attached to it. The condominium itself is an ocean-front property, but only a select few of its units are ocean-side units. These units are also among its newest additions, raising their value further. Older units further from the shore are listed at far lower prices. Current listings include $998,000 and $975,000.
These extremes come together to give Montauk Shores a per-square-foot price that is among the highest in the Hamptons. In past decades, Montauk Shores had been on the opposite end of the scale, with its per-square-foot price among the lowest in the Hamptons.
Montauk Shores was first developed in 1976 when it replaced a campsite that had previously been at its location. At that time, Montauk Shores was the first mobile home park condominium in the state. Since then, the local market and larger economy have changed significantly, providing Montauk Shores with just the kind of economic situation to raise values. The future of Montauk Shore’s unit values is likely to be determined in the Spring. It remains to be seen if the hoped-for class of young money surfer-CEOs will flock to Montauk Shores as hoped. If there is not enough demand to satisfy the ambitiously high listings, prices may be decreased.
