LOS ANGELES—According to recent trend sheet from the Mark Co., condominium prices in Downtown Los Angeles are on the rise. In April, prices increased by 8% year-over-year and 1% from the previous month. This places the average cost per square foot at around $650.
Resale condominium properties trended up in value 6% year-over-year and 1% month-over-month. The average price per square foot for resale condos along is $540. The rise in values is especially interesting considering the number of sales was down 5% year-over-year and 8% month-over-month with a total of 40 sales in April. The prices of penthouse apartments, however, did not see as significant of an increase, rising by only 8% year-over-year and down 1% from the previous month.
There are currently 118 active condo listings in the market. The most active multifamily complexes in terms of condo sales are the Barker Block, Evo and the Ritz Carlton Residences at L.A. LIVE. The Barker Block is the 68-unit Warehouse 1 complex that completed construction late last year. The property has sold 48 units with 20 remaining. List prices for units start at $435,000 or $535 per square foot. The other two complexes are luxury buildings. Evo’s list prices start at $1.5 million or $600 per square foot and the Residences list prices begin at $900 per square foot, however all of the residences are currently under contract.
The increase in condominium values is largely due to the limited supply. The trend sheet shows that new construction inventory in April was down 67% from the same time last year and 10% from March of this year. “Prices are being driven higher by a lack of new construction inventory,” Alan Mark, president and founding partner at the Mark Co, tells GlobeSt.com. “Evo on South Grand Avenue, one of only two developments currently selling new condominiums, has just two out of 311 units remaining for sale. Metropolis, the only high-rise under construction in the area, won’t be available until 2016. And, the increasing livability of Downtown Los Angeles is attracting a range of buyers, from baby boomers to millennials, who are seeking an urban, walkable lifestyle.”