Condo Projects Shelved
June 29, 2009From a recent article at the San Francisco Business Times:
Some 3,019 new units of housing came online in 2008, the final burst of a condo construction bubble that peaked in 2006 and started to deflate in late 2007. Since then prices have dropped 20 to 30 percent. A recent Polaris Group report found there are 1,340 condominium units available for resale — 58 percent more than available in May 2008 and a 10.3-month supply. The one major condo project currently under construction, Jackson Pacific’s 180-unit One Hawthorne St., will come online in 2010.
Every major condo project expected to break ground in 2008 was shelved, including:
Urban West Associates’ 292-unit phase two of One Rincon Hill.
Bosa Development’s 318-unit phase two of the Radiance.
Crescent Heights’s 720-unit project at 1401 Market St.
Turnberry’s 227-unit tower at 45 Lansing St.
Some huge SF developments have been delayed or canceled altogether
As grim as the news sounds, we actually think this is a good thing for San Francisco’s real estate market, particularly the neighborhoods of South Beach, SOMA, and Rincon Hill. More inventory in these already saturated areas will not do anyone any good. You may want to brush up on a few articles we’ve written in the past regarding cookie-cutter-condo-construction (click the links):
Your Builder Doesn’t Care About You
Is it OK to buy at a New Development?
Location Location Location? Not Anymore.
