Downtown LA Real Estate Market Still Hot

Good news for the Downtown LA real estate market thanks to LA Downtown News
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News Brief

While the national housing market is expected to tumble well into 2008, the Downtown Los Angeles market is faring considerably better, according to a second quarter update by CB Richard Ellis. The recently released study found the average condominium sale price was

$635,005, an increase of 1.8% over the prior quarter. By comparison, the average price for a home in L.A. County during the same period was $535,000, down 1.8% from the previous quarter. The number of resale condo transactions also saw an uptick, with 84 of the 141 listed properties sold.

Construction of new condos averaged just over 80 units per month during the second quarter, a nearly 100% increase from the previous quarter. Still, there are only 199 new units available for sale and immediate occupancy. The report found that there was a total of 108 units of both resale and new construction sold per month, up from only 57 transactions per month in the prior quarter. "Increasing demand for condominium housing in Downtown L.A. is beginning to positively affect average prices paid per square foot," said the report. "Downtown L.A.'s recorded condominium sales increased nearly 3% - from $532 per square foot in the first quarter to $547 per square foot in the most recent quarter."

The rental market is also producing at record levels, with occupancy up to 92.9% in Downtown. Another 1,000 units are expected to open in the next six months, with rental rate increases continuing well ahead of inflation.

The report also found that office vacancy is decreasing, and is now at 13.65%; with no new supply, demand and rents are expected to rise as much as 17% over 2006 by the end of the year. In addition, the hotel sector made a strong showing, with 29 conventions booked at the L.A. Convention Center from 2008 through 2013, more than LA Inc. has ever booked since its inception.

© Los Angeles Downtown News