LOS ANGELES—Trumark Urban, the developer behind condo project Ten50, is bullish on the Downtown Condo market, despite a report last week from the Mark Co. showing that condo prices fell in 13% the month of January. According to Arden Hearing, Trumark Urban managing director, the developer's data shows that condo pricing is on an upward trajectory and falling prices are not a concern.
“I don't think that anyone has negative intentions, but there is data and plenty of anecdotes to show that condo pricing today is at a point that surpasses all previous highs, and it continues to trend upwards,” Hearing tells GlobeSt.com. “The market is aware of the product that is coming online, like Metropolis and Ten50. I don't believe that condo prices are plummeting.”
Polaris Pacific, a widely used real estate marketing firm and the data firm that Trumark Urban uses, also refuted the Mark Co.'s findings, saying that the analysis of the data was too wide, and gave alternate numbers to show a steady increase in condo pricing. While Hearing doesn't have statistics to share—he is a developer, not a researcher—his understanding of various reports he uses to make development decisions is that condo demand in the downtown market remains high and, as a result, condo pricing will continue to trend upward. “I don't know enough about the sample,” he says. “When you look at price per square foot, the numbers can be easily skewed by the product type and the inventory being referenced.”
While there are several condo projects under construction, they aren't all poised to come online at once, like some of the multifamily developments in DTLA. Trumark's $110 million Ten50 project broke ground last year and is set to open in September 2016. As of now, Hearing's forecast is strong for the opening. “I do not believe, and we are selling condos in Los Angeles, that there is any negative trajectory on pricing for the next 24 to 36 months,” he says.
LOS ANGELES—Trumark Urban, the developer behind condo project Ten50, is bullish on the Downtown Condo market, despite a report last week from the Mark Co. showing that condo prices fell in 13% the month of January. According to Arden Hearing, Trumark Urban managing director, the developer's data shows that condo pricing is on an upward trajectory and falling prices are not a concern.
“I don't think that anyone has negative intentions, but there is data and plenty of anecdotes to show that condo pricing today is at a point that surpasses all previous highs, and it continues to trend upwards,” Hearing tells GlobeSt.com. “The market is aware of the product that is coming online, like Metropolis and Ten50. I don't believe that condo prices are plummeting.”
Polaris Pacific, a widely used real estate marketing firm and the data firm that Trumark Urban uses, also refuted the Mark Co.'s findings, saying that the analysis of the data was too wide, and gave alternate numbers to show a steady increase in condo pricing. While Hearing doesn't have statistics to share—he is a developer, not a researcher—his understanding of various reports he uses to make development decisions is that condo demand in the downtown market remains high and, as a result, condo pricing will continue to trend upward. “I don't know enough about the sample,” he says. “When you look at price per square foot, the numbers can be easily skewed by the product type and the inventory being referenced.”
While there are several condo projects under construction, they aren't all poised to come online at once, like some of the multifamily developments in DTLA. Trumark's $110 million Ten50 project broke ground last year and is set to open in September 2016. As of now, Hearing's forecast is strong for the opening. “I do not believe, and we are selling condos in Los Angeles, that there is any negative trajectory on pricing for the next 24 to 36 months,” he says.
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.