Welcome to San Diego Blog | July 19, 2011

Are San Diego High Rise Condos an Endangered Species?

Luxury Condos For Sale in 92101.

The  trend of shrinking inventory in San Diego continues:

 This study is focused particularly on High-Rise Towers in the 92101 zip code that have elegant finishes, upscale amenities, as well as a location that can command the upper level pricepoints on the market.  I have scaled this list down to 13 communities that fit this category.

Looking at today’s inventory of luxury high-rise condos for sale in Downtown San Diego, the number  for sale is now: 121!

Since January 1st, 2011, we have sold 192 condos in this category, bumping the average sales to 27.4 per month. 

At the current pace,  should we add the Downtown Luxury Condo to the list of Endangered Species?

Of course absorption rates will vary based on price points; for example,  the entry level condo priced from $200,000 to $400,000 will sell much quicker than a high end condo priced from $750,000 and up.   The buildings in this study have prices that range from the high $200,000’s to $2,7000,000.  Such a broad range requires a separate study on specific price categories to get a realistic absorption rate; however,  what this study does show is a determination of which buildings are performing, and which buildings we predict will continue this trend.

Breaking down the numbers by specific building reveals the following trends:

Condo sales Under $450,000 in Luxury High Rise Buildings are RED HOT, and are becoming scarce!

Entry level condo sales from the high $200,000- $449,000 make up for approximately 15% of today’s inventory.  Days on the market are very short with multiple offers on the better value properties, creating very high demand.  This is the most accessible price range to the largest group of buyers.  In addition, investors are frequently buying in this category, increasing the demand further.

Sales on moderately priced Luxury condos from $450,000-$749,000 have actually slowed down slightly.  This is an interesting trend as the sellers who have listed their properties in this range may be more stretched and less willing to sell at a drastically reduce the sales price.  This may contribute to fewer buyers seeking properties in this range as they may default to a lower price range in hopes of finding more value elswhere.

High end condos sales have gradually increased over the past 3 months!

Buyers who are purchasing in this category have more flexibility with their financial decisions, allowing them to take advantage of luxury condos that may be undervalued.

Purchasing a Luxury Condo in Downtown San Diego is proving to be a very good investment for a buyer with cash. 

 

4 out of the Top 5 Best Selling Luxury Condo Developments in 2011 were by Bosa Development!

Bayside by Bosa:  Had the greatest number of sales (44) in 2011 primarily due to Builder Close Out Prices.  Now with very few Developer properties remaining, the inventory has shrunk to less than half of what it was in the beginning of the year (17).

Cityfront Terrace:  Had 7 sales so far in 2011.  This was one of the few communities to see a slight increase in ACTIVE Listings (9).  This increase may be due to litigation on the building being settled, which creates a more favorable environment for sales.

Electra:  Has had the fourth highest sales so far in 2011 with 20 properties sold.  The current available inventory for this community is now 11, almost a 50% drop in ACTIVE Listings since the beginning of the year.

Harbor Club:  Had 7 sales so far in 2011.  There are now 9 ACTIVE Listings, a slight increase; however, this number still reflects only 4.5% of the total inventory in the building.  One of the relavant factors that relate to single digit sales in this communite are attributed by the million dollar plus price points that this building commands.  We see a much lower percentace in sales volume from $750,00 and up.

Horizons:  Had 15 sales so far in 2011.  There are now only 4 Active Listings which is a 73% drop in total inventory for sale in the building.  This is a building currently on the ENDANGERED SPECIES List.

Meridian:  Had only 3 sales in 2011, and there are 10 ACTIVE Listings.  The increase in homes for sale may be due to completion of common area improvements.  Similar to Harbor Club in that this building commands the million dollar plus price point, narrowing thye scope of potential buyers significantly.

Park Place:  There were 7 sales at Park PLace in 2011.   There are now only 2 ACTIVE Listings in the entire building:  Definitly one of Downtown’s ENDANGERED SPECIES!

Pinnacle Museum Tower:  There have been 9 sales at Pinnacle in 2011, and there are now 7 ACTIVE Listings.   Finding an available property, or a potential deal in this building is becoming a rare find!

Renaissance:  There have been 5 sales at Renaissance in 2011, and there are now 9 ACTIVE Listings for sale. This number reflects a mere fraction of the total inventory in these two luxury towers.  Recent litigation being settled may have stimulated recent listings creating a cause for more added listings.

Sapphire Tower:  One of the last remaining new home projects in Downtown San Diego.  9 Properties sold so far in 2011 with only 11 ACTIVE Listings currently for sale.

The Grande:  San Diego’s second best selling luxury tower had 25 sales thus far in 2011.  With only 15 ACTIVE LIstings for sale in the two towers, finding a hidden jewel in the building is becoming harder to find…

The Legend:  Another property by Bosa, and the fifth best seller with a few Developer units still for sale.  There have been 16 sales in 2011 so far, with 9 ACTIVE Listings available for sale.

The Mark:  Was the third Best Seller, and the only non- Bosa Project to make the top 5 for number of sales in a luxury tower in 2011.  Many of the sales were Developer Close Out Sales.  There were 21 sales in 2011 and there are now 13 Active Listings available for sale.

There are only a few remaining  Elite Penthouse Condos for Sale in Downtown San Diego

The Metropolitan:  The Ballpark District’s most luxurious residence had 5 sales in 2011, with 3 ACTIVE Listings currently for sale.  These properties are listed above $1Million so we see fewer transactions taking place due to the limited scope of buyers looking in this elite category.

Looking forward:

With only 121 Luxury Condos for sale in Downtown there is only a little more than 5 months supply, and then they’re gone….!

For the latest detailed information on Downtown San Diego’s absorption rates, broken down by price category, click here.

Interested in learning more about Luxury Condos in Downtown San Diego?

Give us a call: (858) 531-8785

 


Written by: admin

Categories: Columbia District Real Estate, Downtown San Diego, East Village Real Estate, Luxury San Diego Condos, Marina District Real Estate

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