389 of 736 Units Sold So Far in Spring, W, Austonian, and Four Seasons
September 19, 2010 22:30 Filed in: News
There are four downtown buildings -- Spring, the Four Seasons Residences, the Austonian, and the W -- where you can still find new condo units (+ BartonPlace which is just across the lake). When these buildings are sold out, it will be a long time before new downtown Austin condo inventory appears.
Today, the Statesman reported previously unpublished data on current sales for the four remaining projects. What the developer-provided data shows is that 389 of 736 available units in these four new projects are currently sold or under contract. While this 53% sales rate means that there are still 347 mostly high-end units left to sell, the numbers do represent amazing progress for the downtown condo market.
During the last 12 months, 165 units were transacted on the MLS. In comparison, the 389 units sold through private sales represents more than 2x last year's complete downtown Austin condo sales volume. Since new unit sales in these four projects are not included in the MLS, it's been very difficult to gauge the full scope of downtown Austin condo sales, especially for units priced over $600,000. While very very few units priced over $1 million have sold on MLS, the average unit listing price for the four new buildings is greater than $1 million. What the new data shows is that sales have been relatively strong and likely accelerating as the project's neared completion.
Here is the developer-reported sales by project:
Spring: 158 / 247 (64%) units sold or under contract
W Residences: 84 / 159 (53%) units sold or under contract
Four Seasons: 77 / 148 (52%) units sold or under contract
Austonian: 70 / 178 (39%) units sold or under contract
With this new data, there are a few key observations:
- There are very few downtown Austin Condo units still available that are priced below $500k. The ones that are left, mostly in Spring, will likely be gone soon.
- The Austonian's sales are lower than expected
- The W, which is not completed, has a higher than expected number of units under contract. When the project is completed, it is possible that some buyers may not close on units as expected. Since the other projects are completed, attrition is less of an issue.
- With lots of high-end million $+ units still available, there are bound to be opportunities to discretely negotiate with developers. In these projects, the developers will do what they can to avoid discounting, but the financial pressure for them to sell units is immense.
- The article reports that Spring is already discounting some larger units.
- Larry Warshaw, a partner in Spring & BartonPlace, pointed out that "that despite 2008 and 2009 being two of the worst economic years in decades, they proved to be the two top years for downtown condo sales. Those sales were boosted by the 2008 opening of the largest project to date — the 430-unit 360 condo tower at Third and Nueces streets — but "this doesn't make the numbers any less impressive," Warshaw said. "It shows that the Austin market easily absorbs supply."
Today, the Statesman reported previously unpublished data on current sales for the four remaining projects. What the developer-provided data shows is that 389 of 736 available units in these four new projects are currently sold or under contract. While this 53% sales rate means that there are still 347 mostly high-end units left to sell, the numbers do represent amazing progress for the downtown condo market.
During the last 12 months, 165 units were transacted on the MLS. In comparison, the 389 units sold through private sales represents more than 2x last year's complete downtown Austin condo sales volume. Since new unit sales in these four projects are not included in the MLS, it's been very difficult to gauge the full scope of downtown Austin condo sales, especially for units priced over $600,000. While very very few units priced over $1 million have sold on MLS, the average unit listing price for the four new buildings is greater than $1 million. What the new data shows is that sales have been relatively strong and likely accelerating as the project's neared completion.
Here is the developer-reported sales by project:
Spring: 158 / 247 (64%) units sold or under contract
W Residences: 84 / 159 (53%) units sold or under contract
Four Seasons: 77 / 148 (52%) units sold or under contract
Austonian: 70 / 178 (39%) units sold or under contract
With this new data, there are a few key observations:
- There are very few downtown Austin Condo units still available that are priced below $500k. The ones that are left, mostly in Spring, will likely be gone soon.
- The Austonian's sales are lower than expected
- The W, which is not completed, has a higher than expected number of units under contract. When the project is completed, it is possible that some buyers may not close on units as expected. Since the other projects are completed, attrition is less of an issue.
- With lots of high-end million $+ units still available, there are bound to be opportunities to discretely negotiate with developers. In these projects, the developers will do what they can to avoid discounting, but the financial pressure for them to sell units is immense.
- The article reports that Spring is already discounting some larger units.
- Larry Warshaw, a partner in Spring & BartonPlace, pointed out that "that despite 2008 and 2009 being two of the worst economic years in decades, they proved to be the two top years for downtown condo sales. Those sales were boosted by the 2008 opening of the largest project to date — the 430-unit 360 condo tower at Third and Nueces streets — but "this doesn't make the numbers any less impressive," Warshaw said. "It shows that the Austin market easily absorbs supply."