As New Inventory Slows, San Francisco Condo Pricing Rising
Condo inventory has taken a sharp decline with healthy sales activity in San Francisco over the last few months and only a handful of condo projects delivering new units. Even though the pipeline has over 1,000 new condo units, many of these units are not expected to be completed this year.
Demand for condos remained strong at the start of the year and sales picked up in January and February, typically slow months for home sales. In January, 80 condos were placed under contract or sold, an increase of 70% compared to December and a 344% increase year over year, according to The Mark Co. Pricing is up 6% to about $1,219/SF compared to this time last year.
New inventory was down 34% during January, with 651 new condos for sale. The Mark Co. expects inventory to remain below 1,500 for the next several years even though there are 1,480 condos under construction. These new condos are within larger projects not expected to be completed for two years, according to The Mark Co.
San Francisco’s largest condo towers are reporting an uptick in sales. As of Tuesday, Lumina, San Francisco’s largest condo tower actively selling new units, has sold 95% of its units. In the last two months, Tishman Speyer has sold 20 luxury condos; 28 one-, two- and three-bedrooms are available. Pricing at Lumina is about $1,429/SF, according to The Mark Co.
The city’s second-largest condo complex actively selling units, CIM Group's One Mission Bay, has sold over 75% of its 350 units as of January at a price of $1,300/SF.
Over half of the 298 condos in The Harrison have been sold as of mid-February. January was one of the most active sales months for The Harrison, Maximus Real Estate Partners founder Rob Rosania told the San Francisco Business Times. Pricing started at $800K when the developer launched sales in April 2016, but its second release of 140 units has one-bedroom units starting above $1M. Penthouses range from $3.5M to $8.8M.
More inventory just hit the market, which could help with current demand. Grosvenor Americas launched sales at its 288 Pacific at the end of February. The seven-story, mixed-use development designed by Handel Architects offers 33 condos within Jackson Square.
The property includes private at-grade mechanized parking for each home, bike parking, two rooftop terraces and a lobby with concierge service. The building has studios, one-, two- and three-bedroom units and terrace penthouses. Many units have private outdoor space and up to 11-foot ceilings.
Grosvenor Americas is developing a 44-unit residential project at 875 California, one of the last developable parcels on Nob Hill. The project is set to deliver in 2019.
Additional condos are forthcoming from John Buck Co.’s 120-unit waterfront project at 75 Howard, which is expected to start construction in spring. Delivery is expected mid-2020.
Z&L Properties began construction of a 109-unit condo project at 1554 Market St. in late February. The new 12-story, two-building project from Z&L will be designed by Handel Architects. The Mid-Market condo project joins one other condo building, Studio 1075, that is nearing full completion and is actively selling units. Build Inc., along with equity partner Vanke, submitted plans in November to build a 400-foot, 454-unit residential tower in Mid-Market.