Welcome to San Diego Blog | July 6, 2011
Luxury Downtown San Diego Condos
Downtown San Diego Condos for Out of Market Buyers
Over the past 20 years, the downtown San Diego Condo market has become world class. The selection of highrise condos and Downtown San Diego Apartments has never rivaled New York, San Francisco or Chicago for selection. However the quality of our condos equal anything found in those cities. And you get to live in San Diego!
San Diego redefines the value proposition for luxury condos. If you’ve looked at highrise living in the markets discussed above, come have a look at San Diego. The price range from $1-2 mil buys 1,500 to 3,000 square feet, above the 15th floor, with stunning bay and ocean views. And all of Downtown San Diego condos are new.
With construction of Meridian, opening in 1985, followed by Harbor Club in 1993, there has been a steady stream of world class Downtown San Diego Condos. Starting in 2000, Bosa Development has added 8 luxury condo towers to the San Diego skyline. Among these, Park Place, The Grande North and South, and Bayside are particlularly relevant to this discussion of Downtown San Diego luxury condos. Since 1985 over 10,000 condos have been built in San Diego.
We are at a “tipping point” in the Downtown San Diego Luxury Condo market. The numbers that follow indicate a clear delineation between motivated sellers and those testing the waters. Further, unlike the lower price points in Downtown San Diego condos, few of these transactions involve a bank or asset manager.
Shortage of Downtown San Diego Luxury Condos
Have you heard stories of the distressed California housing market? While broadly this may be true in many suburban neighborhoods, the high end segment of the real estate market is extremely tight. Overall downtown San Diego condo inventory has fallen by over 50% in the past 18 months. In luxury buildings and this price range, the inventory shortage is even greater.
Let’s talk about statistics for a moment
MLS currently shows 43 Downtown SanDiego condos over $1,000,000. Over the past 90 days, there have been 15 sold condos in this price category. The average time on market for these sold properties is 93 days.
Not included in these sold numbers are some of the new construction condos sold in buildings like Sapphire Towers and Bayside. Does this sound like a distressed housing market?
Let’s talk for a moment about Pinnacle Marina Tower, located at 550 Front Street. It is completely unique among San Diego Condos for its 10 foot ceilings, marble and travertine flooring are standard, as well as Italian Snaidero cabinetry. The location and views at Pinnacle are unsurpassed.
There are currently 5 properties listed at Pinnacle over $1 mil:
Sold at Pinnacle in past 90 Days over $1 mil
The numbers indicate that the market is dynamic and volatile. We have closed transactions at Pinnacle this year representing buyers and sellers. There is a definite conflict taking place in Pinnacle right now, as you see Sold Properties generally in a range of $700-850/sf, while listed properties are over $900. It should be noted that not all views are equal, but included among sold properties are some of Pinnacle’s best views.
Outlook for Luxury Downtown San Diego Condos
The analysis of comparable buildings (such as Bayside, The Grande, Sapphire Towers or Meridian) would be similar. Inventory is in short supply. There is a tremendous price gap between homes that are selling and those lingering as long-term listings. As said earlier, we’re not dealing with asset managers and banks.
As inventory continues to constrict, we see a slow creep in prices. Perhaps more important to this segment, buyers from outside of San Diego are recognizing value in the market and purchasing at these prices.
It is time for action if you’re looing to expand your real estate portfolio. As Downtown Real Estate specialists, not only do we watch changes in the market daily, but we are also engaged with owners and agents representing these properties. This gives us tremendous access to the best opportunities to assist in your purchase of a Downtown San Diego Luxury condo.