I've been watching the flatbush/farragut area since it's close to the growing and developing junction area. Fwiw it seems to be pretty hot. Latest example would be 3510 Glenwood road, it was listed and sold in under 1 month - cash. Price 1.35m, which is a new high for the neighborhood. There have been a number of houses that have been purchased to tear down, this one is on a double lot, hence the higher price. Of the double lot tear downs this one represents a +30% increase yoy, permits have not been filed but it was sold to an LLC so I suspect they will file soon.
What is curious about this is that the prices for the homes themselves have not caught up to the prices that the developers are paying to tear down houses! Interesting. What do I mean? Well there was another house 730 e32nd street that sold for 880k that is going to be converted into condos (http://newyorkyimby.com/2015/11/permits-filed-32-residential-units-coming-to-26-east-19th-street-730-east-32nd-street-flatbush.html), but just a few weeks earlier 1617 New York ave sold to retail homeowners for 749k... there is a pretty big gap, what gives? Similar lot sizes, same zoning. Why are developers paying more than retail costs just to tear something down?