Los Angeles Gets Serious About Its Downtown-WSJ ARTICLE (Bradley: sales, rental market)

[hjt123]

Originally Posted by ProjectMersh

The condo market is under supplied in downtown right now. New supply will come in and prices should correct.

That shot in front of the new ACE hotel is insteresting. A woman carrying an Acne bag (from the Swedish retailer which just opened nearby). Yes, Broadway is changing...

I heard they've already converted all the old buildings possible for residential living. And i don't think new buildings are going to have reasonably priced units, they're probably going to start at or slightly above the market rate. Downtown is going to get even more expensive as it develops, imo.

[jm1982]

Originally Posted by hjt123

I heard they've already converted all the old buildings possible for residential living. And i don't think new buildings are going to have reasonably priced units, they're probably going to start at or slightly above the market rate. Downtown is going to get even more expensive as it develops, imo.

Yeah I wouldn't be surprised if it gets more expensive. Per square foot it's still a lot less than Manhattan.
Prices have already gone up a lot, but that doesn't mean they can't go up more.

It seems to make sense that more density will happen in the areas adjacent to downtown to meet demand for people that want to live in the area.

I don't know whether or not all possible buildings in Downtown proper have been converted to residential.

There is also a ton of development happening in South Park near Staples center.

I also agree though that these developments are unlikely to be affordable..but I know there are some rules that require developers to provide a certain number of units as affordable housing. It will still be a small percentage of people that will be able to obtain those particular units.

[ProjectMersh]

Originally Posted by hjt123

I heard they've already converted all the old buildings possible for residential living. And i don't think new buildings are going to have reasonably priced units, they're probably going to start at or slightly above the market rate. Downtown is going to get even more expensive as it develops, imo.

There are lots of parking lots waiting to get developed. Also, plenty of owners/developers have plans (or will make plans) to convert their existing rental units to condos. Nothing stopping any of the current 5,000 or so units under construction or planned from going condo either.

New supply should cool off the market a bit (not necessarily cause a drop) but at least make it go flat for a while. There has been no NEW condo supply added in DTLA since the recession (except for the Barker Block I think). Developers got the jitters after the for sale housing market tanked.

I work downtown and I know one young 20-something (like 22 or 23) that owns his unit (his parents gave him major down payment assistance). The rest of the 20-somethings that work at my company that live downtown rent. They would love to own but are priced out.

So maybe a combination of overseas buyers, rich kids and wealthy empty nesters will keep the market afloat or prices rising? I don't know if all those groups are enough....maybe so I just don't know.

[munchitup]

Originally Posted by ProjectMersh

The condo market is under supplied in downtown right now. New supply will come in and prices should correct.

That shot in front of the new ACE hotel is insteresting. A woman carrying an Acne bag (from the Swedish retailer which just opened nearby). Yes, Broadway is changing...

Not to mention the doofus next to her who wouldn't have been caught dead downtown 5 years ago...

[ProjectMersh]

Originally Posted by munchitup

Not to mention the doofus next to her who wouldn't have been caught dead downtown 5 years ago...

Hey that is me! No, all kidding aside, that girl was not a likely prospect to be downtown either.

[munchitup]

Originally Posted by ProjectMersh

Hey that is me! No, all kidding aside, that girl was not a likely prospect to be downtown either.

Psh that guy's probably never even heard of the Minutemen. Agree about the girl - but it's good DTLA now has draws that attract these types, it takes all kinds.

[JohnG72]

Originally Posted by ProjectMersh

The condo market is under supplied in downtown right now. New supply will come in and prices should correct.

No, it's not and it won't.

The downtown condo market is gamed and rigged bad at the moment.

I point to to non sale of the Garfield Building, the one across the street from it, and also the vacant building at 7th/grand(or is it Olive?) as proof. The new rentals coming in are going to depress rents, if say six buildings(instead of three) went up in the next two years it would crush rents.

Already you have essex purposely holding units off market to keep rents high, the market is at saturation in DTLA and additional units will drive rents down over the next two years.

[Marv101]

Those condos aren't going to go very far below the current floor of $500,000, given the very high prices for land throughout the state due to environmental restrictions and a ton of other items.

[RaymondChandlerLives]

Originally Posted by JohnG72

No, it's not and it won't.

The downtown condo market is gamed and rigged bad at the moment.

I point to to non sale of the Garfield Building, the one across the street from it, and also the vacant building at 7th/grand(or is it Olive?) as proof. The new rentals coming in are going to depress rents, if say six buildings(instead of three) went up in the next two years it would crush rents.

Already you have essex purposely holding units off market to keep rents high, the market is at saturation in DTLA and additional units will drive rents down over the next two years.

I doubt it.

As DTLA continues to polish up, prices for condos will only increase. They're already high now, even though the more urbane amenities commonly associated with the Westside have yet to set up shop. They're on their way though, make no mistake about it.

The question is--how far will the new/retrofitted housing stretch? Could the entire freeway loop turn residential within 20 years? With the LA river restoration, I think it's a distinct possibility.

[jamills21]

Originally Posted by RaymondChandlerLives

I doubt it.

As DTLA continues to polish up, prices for condos will only increase. They're already high now, even though the more urbane amenities commonly associated with the Westside have yet to set up shop. They're on their way though, make no mistake about it.

The question is--how far will the new/retrofitted housing stretch? Could the entire freeway loop turn residential within 20 years? With the LA river restoration, I think it's a distinct possibility.

Very Very Possible... There is still a lot of room South of Olympic and around Little Tokyo that can developed. I can see DTLA in the 100,000 pop. range in the next 5 years. It really helps we do not have any NIMBYS in DTLA.