New Developments Face a New Reality in SF
Oct.27, 2008 in
Arterra, Civic Center/Van Ness, Doom & Gloom, Hayes Valley, High Rise, market info, New Construction, New Developments, Potrero Hill, real estate, Reduced, San Francisco, San Francisco Real Estate, SOMA, Symphony Towers, The Potrero, theFrontSteps, Updates, Van Ness/Civic Center
I’ve heard from multiple sources that SF real estate is, for the most part, immune to the havoc wreaked on other parts of the US. But sales at our most recent condo complexes show that happy-smile-don’t-worry line of rhetoric is about as reliable as the clown’s was in Poltergeist (Happy Halloween!).
Socketsite reports that Symphony Towers, with only 55% of its units sold, has recently reduced prices 30%. The “Tower One Close Out,” advertised on the building’s webpage, demonstrates:
| T-907 Penthouse studio w/built in Murphy bed & views | $419,000 |
| T-602 1-br, Quiet courtyard location | $449,000 |
You have to wonder if those buyers among the 55% sold group are perhaps a wee bit upset. You might also wonder if you can’t, given the hint of desperation (“close out”= we really, really want to sell these goddamn condos!), get one of these units for even less than the advertised price.
Plus, Symphony Towers is not the only recent development cutting prices. The Hayes is also making cuts, despite its central location and uber-hip marketing (including requisite “ambient” track playing over your web tour of the property, a photo from which appears below). #610, for example, is a 1 bed/1 bath down now from $599K to $499K.
The Arterra, our newish “green” building at 300 Berry St. is also offering reduced prices, (such as #904, a 1 bed/1bath down from $649K to $599K), as is The Potrero.
More good news for people who love bad news is that, according to the San Francisco Business Times, construction has been suspended at 535 Mission St: “The $100 million HOK-designed tower was put on hold earlier this month in response to worsening market conditions.”
Well then. Seems like if one wants to buy right now, one should take these worsening conditions to the negotiating table. Don’t invite the clown.
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Photo credits, respectively: Scary ass clown: Brain Handles.com; The Hayes staged unit: The Hayes.com.
October 27th, 2008 at 9:38 am
This reminds me of the Johnny Drama line when he was asked about all of the reviews he’d seen for “Five Towns.”
“It’s a bloodbath, bro.”
October 27th, 2008 at 11:49 am
Bloodbath, shit storm. . .call it what you will. We are overbuilt. . .and it is next to near impossible to get financing!
October 27th, 2008 at 12:57 pm
Also importnat is HOW we are overbuilt. Nothing is remotely affordable to the vast majority of those living here– how many GD people can afford a 1 bedroom condo for over half a mil? So, the places sit and sit, and the great buying potential continues to rent.
November 9th, 2008 at 12:34 pm
Interesting conclusion that we are “overbuilt” and the issue is on the supply side. Think back just a few months — there was more than enough demand to meet the current and coing supply. That demand is now gone due to the credit squeeze, job losses, etc. Supply is still the same. The issue here is with demand, not supply. SF has never been overbuilt and is unlikely to ever be so.
November 9th, 2008 at 5:47 pm
I agree with Mac– but temper it to say there is a demand, just not for these overpriced condos we have too many of