Downtown Condo Project Price Cuts?

[Mr_Brightside]

I’ve posted a blog entry about a downtown development that may be of interest.

I’m very interested in watching how developers liquidate properties in a development at lower prices than what the first phase buyers bought at, this entry looks at this question and Metrome which is a downtown condo project.

http://sandiegomarketmonitor.blogspot.com/2006/09/interesting-price-cut-activity-at.html

[powayseller]

Brightside’s link

[PerryChase]

Mr Brightside, thanks for you update. I love your site and I check it frequently. I plan to buy Downtown one day.

Do you think that developera will build towers with $200/month HOA? $500 to $750 per month HOA is too expensive for working and middle class people to afford. A Downtown full of luxury towers would not be a very pleasant place to live. I’d like to see a NYC kinda of feel in San Diego.

[Mr_Brightside]

I have always been amazed at the high HOA fees. HOA fees in Vancouver BC where Bosa and Intergulf (Treo, La Vita) operate has much lower fees.

That said like everything else California is more expensive and I also think the earthquake insurance is around $100 a month. I don’t think Vancouver is subject to earthquakes to the degree we are so that also accounts for the difference. I also think electricity is much cheaper in BC which also adds up.

I do think that luxury housing is just fine as you do create a move up effect, the best way to end up with affordable housing is for buildigns like Treo and La Vita which are already mid-market to be totally outclassed along with reduced views. Again I totally support the concept of affordable housing via letting the market put as much product in whatever mix people want to build.

[LookoutBelow]

Vancouver (VanKong as its affectionaltely known) might not be subject to such severe earthquakes like california is, but what I saw on the IMAXX theater titled “volcanoes”, is what the National agencies predict for Mt. Ranier or any number of them in the area is much worse. It paints a pretty bleak picture of the area from Seattle to Vancouver and more…….

I just happen to meet my new neighbors the other day, they were both from the Pacific N/W and happen to be geologist (one also a seismologist) for the govt and they moved down here because of what they said was a virtual “powder keg” of danger for the Pacific N/W with volcano eruptions and earthquakes.

What do they know ?

[Mr_Brightside]

Two thoughts on this, first the market will probably not factor in volcano or sunami risk for the northwest as there hasn’t been a big event yet. While this could happen since it never has there’s a big discount on the probability of an event and on any finacial losses. I’m not saying I agree with this but markets, while imperfect are better than the alternatives.

Second, I think sometimes scientists can make risks sound bigger than they are as it’s in their interest to make their area of expertise more important in order to acquire funding, etc. I have a ton of respect for these people I’m only running this question through the human nature patterns I’ve observed over the years.

I do find Vancouver to be one of the best cities I’ve ever visited, especially during the summer. It’s also relevant to note that they have their own condo bubble that’s seems to be deflating a bit as well.

[powayseller]

Mr. Brightside, since you are the resident expert on downtown, could you tell me more about your opinions on its current development, both residential and commercial? How many people have moved there? What are the demographics of the current population? What will drive its future prospects? Is the City of San Diego encouraging any development via grants? What would you do for downtown if you were mayor? What are your long-term interests in that area? I know very little about downtown, other than the Gaslamp Quarter has more restaurants than I could ever hope to visit in a year.

Downtowns are a reflection of a city’s urban planning and economics, and showcases the city to the rest of the world. What kind of message does our downtown send? Has San Diego done well in its planning? How does our downtown area compare to that of other cities?

I love your blog, by the way.

[Mr_Brightside]

Wow, there’s a lot here so let me try to hit it all in one shot. I like all of the development downtown, it’s been lopsided to condos of course but I don’t mind that as there’s a great chance that there will be affordable housing again in 2007.

I have no idea how many people have moved here but I can say that the streets are much more active than they used to be, it’s pretty cool actually. The demographics downtown run the gamut between singles that party a lot, couples, retired people, young families, you almost never see older kids.

The only grants I read about are for subsidized housing as there are few very low income projects going into East Village.

If I were mayor? I would work very hard to move the airport out of the city, it’s waste to use a large chunk of the bay for a transportation hub that’s too small for the area anyway. Moving the airport would also allow for much taller buildings and rehabilitation of the southern half of Bankers Hill.

There is a lot going on downtown, each neighborhood is different. I think the city is in pretty good shape but there is plenty of room for improvement.

[PerryChase]

Mr. Brightside,
If you run for mayor, I’ll vote for you!

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