Austonian, W, Four Seasons, & Spring Sales Estimates

Harold Hunt, a research economist with the Real Estate Center at Texas A&M University, published an interesting profile of the downtown Austin condo market in Tierra Grande.

First, the report calculated that "about 1,500 condominiums have been delivered to the downtown market since 2001 . . .To date, nearly 98 percent of those units are sold and closed" Of the 18 projects completed over the last seven years, all but 18 of 1,544 units have been sold.

Interestingly enough, the report included sales estimates by project for four unfinished projects: The Austonian, the Four Seasons, the W Hotel & Residences, and Spring. These estimates, credited to Capital Market Research and dated March 10, 2010, show the challenges in selling hundreds of million dollar units in the current environment. While anecdotal research shows that sales have increased in recent weeks, many additional units remain unsold.

Sales Estimates for Projects Under Construction

Project
Year
Units
Contracts
Avail.
% Sold
Absorption / month
Avg Price
Avg Size
$ / SF
Austonian

2010

178
55
123
31%
1.89
$1,516,000
2203
$688

Four Seasons Residences

2010

148
74
74
50%
2.64
$1,269,447
1969
$645

W Hotel & Residences

2011

159
82
77
52%
2.49
$1,067,352
1716
$622

Spring

2009

248
120
128
48%
3.87
$521,063
969
$538

In summary, the article concluded that "More than 400 of the most expensive luxury condos in Texas are coming online in downtown Austin. Some say the timing is disastrous; others believe economic recovery may work in favor of these developments. Upscale buyers hold the key to success for this small niche market."