655 hope showroom opens amid lower prices, expectations
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Last time we checked in with 655 Hope, construction on the SECK Group’s emerald tower at 7th and Hope was well underway.
Sales for the 80-unit building hadn’t begun yet, but the serious problems in today’s housing market were only beginning to show.
Now that the sales showroom is open, a press release from the developer states that due to the slowdown, “There will be a gap in construction so everyone buying now will benefit from the [housing] shortage in two years.”
Nothing’s complete without some Downtown statistics thrown in for good measure: “We are only 40,000 people in a city of 15,000,000 but our growth is up 42% in the last three years.”
If you buy that, SECK Group has lowered prices on lower floors by $40k-$60k; 600-square-foot units start at $395,000.
Get in now while you still can, right?
7 comments
“There will be a gap in construction so everyone buying now will benefit from the shortage in two years.”
The shortage of what? Money?
Shortage of housing product. I think he’s saying buy in now and reap the equity benefits later when things have rebounded and the market will be tight.
In my opinion, that’s exactly what’s going to happen. As the retail/restaurant scene continues to mature in the next couple of years and housing construction tapers (and demand stays steady)… developers will be clamoring to start building again.
That’s assuming we’re at the bottom… but I agree, in a few years things will become sane again.
I don’t agree. I think the glut will last longer, at least until prices come down to a certain level ($300 - $400 per square foot?).
The 655 Hope price you quoted is more than $600 per sq foot. That’s insane in this market.
Bert, near-term you’re 100% right. I don’t think we’ve glimpsed the bottom yet.
The big issue now isn’t whether we’re going to see new construction cranes in the next few months (we’re not) but whether the current residential base is strong enough to foster more organic growth like restaurants and retail.
I was seriously considering buying a unit at 655 Hope a few months ago, but the unassigned parking (forced valet) and the fact the windows don’t open were a bit of a concern. They do have a great location though, and right on top of the 7th/Flower metro station! I’m glad I didn’t end up buying there since it looks like they are quite delayed. I wonder how well those units will sell with those issues I mentioned above.
So…what about the Roosevelt & the Brockman? Is 655 Hope not acknowledging the fact that it has two adapative reuse buildings opening soon next to it? They’re not the only game in town…